In June, the Department of Health and Human Services established a new rule that will greatly expand the approved uses of health reimbursement arrangements (HRAs). Now, HRA users will be able to use those accounts to cover the cost of out-of-pocket dental expenses. The expansion of patient dental care payment options is great news for your practice and your patients.
What Are HRAs?
HRAs are sometimes confused with HSAs, or health savings accounts, where employees can set aside pre-tax funds. With HRAs, an employer will set aside money to cover extra healthcare coverage through a pre-tax medical expense account. HRAs are beneficial for employees because the money in them is not considered income. HRA funds can be used to cover out-of-pocket costs for doctors and now, thanks to this recent rule, to cover patient dental care payment.
Employers can offer up to $1,800 a year per employee to cover qualified medical expenses through an HRA. These accounts can cover the out-of-pocket costs of long-term care insurance, dental care, medical care and vision care. Your office might not encounter employers taking advantage of this benefit option immediately, but it is expected to grow in popularity as the rule becomes more well known.
What Can Patients Use an HRA For?
While every HRA account should come with detailed explanations as to what can be covered, most HRAs allow for patient dental care payment for any non-cosmetic dentistry, including sealants. HRAs can be used as a patient dental care payment for a broad array of procedures and services including dental reconstruction, implants (in a reconstruction situation), dentures, bridges and more. Dental insurance or plan premiums are not covered.
Be prepared to explain to patients with an HRA how it can be used as a patient dental care payment option. Always provide them with a detailed receipt and itemization of what procedures were performed so that they can submit it to an HRA for reimbursement. Your patients will be responsible for keeping those records in the event that the IRS requests a receipt to verify an expense.
Explore Patient Dental Care Payment Options with APEX Reimbursement Specialists
The experts at APEX Reimbursement Specialists can help you to explore the best fee schedule options and demystify UCR fees at your practice for your continued growth and sustained success. Contact our team today by calling (410) 710-6005. We look forward to working with you to make your practice a more profitable place.