Flexible Spending Accounts (FSAs) –Medical Dental Health Savings Accounts (DSAs)

These accounts used to allocate future medical and dental expenses from their pre-tax income in the calendar year – usually December – before it is needed. In other words, the employee will allocate $2,500 in FSAs in December 2007 knowing that they will need to use it in 2008. Patients cannot allocate and use the money in the same calendar year. In addition, whatever money is not spent during the calendar year remains with the employer plan and is lost by the patient.
A significant benefit of flexible spending accounts and dental savings accounts is that they give patients complete control over their dentistry and it can be used for most costs that are not covered by a dental insurance plan. There is typically an annual maximum for these kinds of accounts of around $5,000. When added to a high end Fee For Service dental insurance plan of $2,500 per year, a patient can get a significant total of $7,500 per year in benefits.