Using an HSA to Make Dental Implants Affordable in 2025

Last updated on December 5th, 2024 at 03:31 am

When planning for expensive healthcare expenses like dental implants, understanding how to manage costs effectively is key. Oftentimes people don’t realize many of the resources they have at their disposal that can make a large dental implant procedure affordable. A Health Savings Account (HSA) can be a game-changer when used to make dental implant treatment affordable. Unfortunately, we find that many people are unsure how an HSA works. Not to fear. We’ll break it down here for you in plain language, with a focus on how you can use an HSA to make your dental implant treatment more affordable.

What Is a Health Savings Account (HSA)?

In very simple terms, an HSA is like a special savings account that is designated for healthcare expenses. You can contribute money to it and then use those funds to pay for qualified medical expenses—including dental procedures like implants.

One benefit patients appreciate most about an HSA plan is that any funds contributed are tax-free. This means when you use an HSA for dental implant treatment you’ll saving money before “Uncle Sam” takes his cut.

And in 2025, you’ll be able to contribute even more funds to an HSA than you could in 2024. More on 2025 contribution amounts shortly. For now, think of an HSA as a win-win for at least two reasons:

1. You save money on taxes that is spent on dental implants
2. You create a dedicated fund for health-related costs, like dental implants

Who Can Open an HSA?

To establish a HSA you must first be covered by a HSA-qualified health plan. “What does this mean?”, you ask. HSA-qualified health plans are usually high-deductible health plans (HDHPs). If you are enrolled in a HDHP, you can open an HSA.

A high-deductible plan means you pay more out-of-pocket costs before your insurance coverage begins to kicks in and cover treatment on your behalf. The trade-off is, with a HDHP you benefit from lower monthly premiums that are deducted from your paycheck.

An HSA-qualified health insurance plan must meet certain high deductible requirements that have been set by the IRS. For year 2025, the minimum health insurance deductibles are set at $1,650 for individuals or $3,300 for families.

If you are enrolled in either a traditional medical health insurance, Medicare or Medicaid program, you are not eligible to enroll in an HSA. There are other rules that apply for eligibility for an HSA.

How Much Can You Contribute to a HSA in 2025?

1. You contribute money: Contributions can be made by you, your employer, or both. The contribution limit for 2025 is $4,300 for individuals and $8,550 for families. If you are age 55 or older, an extra $1,000 can be contributed each year.
2. Your funds grow tax-free: Any money you don’t spend can be invested, and it grows tax-free—similar to a retirement account but for healthcare.
3. You spend on qualified expenses: HSA funds can be used tax-free for eligible medical, dental, and vision expenses, including dental implants.

Unused funds roll over year to year, so you’re not pressured to spend the funds before an annual deadline. If you maximize your contributions over a two year period, you will have a total of $17,100 ($8,550 x 2 years). This is one major benefit of an HSA over an FSA.

HSA vs. Traditional Health Insurance

Here’s how an HSA paired with a high-deductible plan compares to traditional insurance:

Feature	HSA + HDHP	Traditional Insurance
Monthly premiums	Typically lower	Typically higher
Out-of-pocket costs	Higher (but offset by HSA funds)	Lower
Tax benefits	Triple tax advantage (contribution, growth, withdrawals)	Limited or none
Flexibility	Funds can grow indefinitely	Use-it-or-lose-it with FSAs

Who Benefits Most from a HSA?

Many people can benefit from establishing a HSA. A HSA is ideal for people who:

• Are relatively healthy and don’t expect to meet their insurance deductible frequently.
• Want to save for future medical or dental expenses.
• Are planning for a major expense, like dental implants, and want to avoid financing the costs.
• Would like to gradually set aside funds, each pay period, for the purpose of planned healthcare services in the future.

How Karen Leveraged Her HSA for Dental Implants

We shared Karen’s HSA story in a previous blog post. We encourage you to find out how she made her HSA work to her benefit. Once Karen understood the benefits of dental implants over the much less expensive traditional dentures option, choosing full-arch dental implants to replace her missing and diseased teeth became her only acceptable option.

The total cost of Karen’s implant procedure was $49,000. Leveraging an HSA for $20,000 of the total cost helped Karen make her dental implants affordable.

Using Your HSA for Dental Implants

When it comes to the cost of dental implants, this can be a significant expense. A full mouth dental implant procedure can cost $25,000 to replace an entire set of teeth for either an upper or lower jaw. But an HSA can make this procedure more affordable. Here’s how:

1. Cover out-of-pocket costs: HSA funds can be used for all eligible dental procedures, including implants.
2. Plan ahead: If you know you’ll need implants in the future, start contributing to your HSA now.
3. Combine benefits: If your insurance covers part of the procedure, use HSA funds for the remaining balance.
4. Tax Savings: By using tax-free HSA funds, you effectively reduce the overall cost of your dental implants.

Why Consider an HSA for Dental Care?

• Tax savings: For example, if you’re in the 24% tax bracket and contribute $4,000 to your HSA, you save $960 in taxes.
• Long-term value: Save for future dental and healthcare needs.
• Flexibility: Use your HSA for a variety of expenses, not just medical or dental.

Summary

An HSA is a smart way to save money and prepare for healthcare costs, especially for treatments like dental implants. If you’re covered by an HSA-qualified health plan, take advantage of this opportunity to maximize your savings and take control of your health expenses.

If you’re unsure whether your plan qualifies or how to get started, talk to your HR department, insurance provider, or financial advisor. The sooner you start, the more you’ll save—and that’s something to smile about!

References

1. Berkley, T., HSA Owner’s Manual, Fourth Edition, 2024
2. Investopedia, Health Savings Account (HSA) Rules and Limits, Accessed 11/18/2024
3. Fidelity, What is an HSA and how does it work?, Accessed 12/4/2024