You’ve received emails from various health providers before, all urging you to “use or lose” your benefits. But have you ever really wondered why? Perhaps you believed it was because they wanted to get that last minute push of patient traffic. Fine, but what’s in it for you? Turns out, a lot!
According to one industry expert, the decision many people make to not utilize their benefits not only hits them in the pocketbook, it actually benefits others.
“You have paid premiums all year for dental insurance, or medical for that matter, so why not use the benefits,” said Mike Kahley, Senior Vice President with Lockton Dunning Benefits, a part of the largest privately held insurance brokerage firm in the world. “In addition, any money left in a Flexible Spending Account reverts to the employer, so you have just paid into an account that you never used, giving your employer free money.”
Simply put, by choosing to not use benefits, you are robbing yourself of the opportunity to improve your dental health while also allowing your employer to retain the money you really earned and improving the bottom line of your insurance company.
“Truthfully, when medical providers suggest you utilize your benefits, it’s really to remind you that you have set money aside for the very purpose of receiving dental treatment, so don’t let too much time go by so that you end up losing what you saved,” said Mike.
So What’s The Hold Up?
Why do so many people pay for benefits they never use? Turns out, many are simply confused about the benefits they have. They do not want to incur a financial “surprise,” so they avoid using their benefits completely.
If you have ever had any dental treatment, you may have been surprised that you ended up paying more, even after receiving a quote for the service.
Most policies have clauses and limitations on how many times they may pay for procedures. One clause used often is a downgrading clause. This gives permission to your insurance company to substitute a less costly procedure for a service already performed. For example, they will only pay for an all-metal crown instead of a natural colored ceramic crown. The way the policy is written, the patient is responsible for the cost difference between the two types of materials used.
So what you don’t use of your 2015 annual maximum benefits, you will lose. So don’t let your insurance company win. Use your benefits. You paid for them.
The Insider Secret is…
“Plan ahead and utilize additional resources such as Health Savings Accounts, Flexible Spending Accounts and deferred payment programs such as Care Credit and you can work with your dentist to create your own treatment plan without the worry of a calendar year limitation,” said Mike. “Now is the time of year many make elections to put money aside, so if you know what treatments you want and need, you can plan accordingly and make it happen early in 2016.”
Many employees have moved to a high-deductible health plan with a Health Savings Account (HSA). Money in an HSA does not have a “use it or lose it” limitation and can be used any time for dental treatments. Furthermore, you can begin using your Flexible Spending Account in January, giving you the entire year to receive treatments.
“By choosing to use your dental benefits now, you can create a plan for larger treatments, such as Invisalign, and take advantage of pre-tax money in 2016,” said Mike. “Once you have made a single payment, you are eligible to take the full amount of your FSA. This makes good financial sense and allows you to be more in control of money you spend on dental treatments.”
So don’t put off making that dental appointment any longer. Turns out there is something in it for you — great dental health, a beautiful smile while maximizing the benefits that you have already paid for, which equates to good financial sense!
