Financial Considerations for Complex Dentistry

From a financial point of view, dental care can be divided into simple and complex categories. Simple dentistry includes professional cleanings, some fillings, root canal treatment, a few extractions, a denture or perhaps a few crowns. Simple dentistry can often be completed for under $3000. Simple dentistry is often covered, at least partially, by dental insurance and can often be spread out over time to take full advantage of benefits. With or without dental insurance, cash flow can often be managed to accommodate simple dentistry.
Complex dentistry, on the other hand, involves multiple teeth that require more complex reconstructive efforts. Complex dentistry is often required to restore deteriorated dentitions when many teeth are broken down or missing, need to be removed, or need multiple root canal treatments, when gums are sick, when dentures are unsatisfactory or when teeth all look bad. Complex treatment can involve the need for dental implants.
Complex dentistry can be more difficult to fit into your cash flow because it can often cost more than $3000.
We hope this information will give you some ideas that will allow you to fit the dentistry you need into your life and enable you to get the attractive, functional and healthy smile you have always wanted.
The issues discussed in the following pages include; 1) Spreading Out Treatment over Time, 2) Financing Treatment, 3) Dental Insurance, 4) Health Spending Account, and 5) Medical Expense Deduction.

Spreading Out Treatment over Time

Sometimes it is easy to spread out treatment over time when treatment is simple and there is no rapidly advancing or potentially dangerous infection present. At Humber valley Dental we always help the patients plan treatment over time to spread out the financial impact of their treatment on their cash flow and take full advantage of dental insurance.
When treatment needed is not simple, spreading treatment over time can increase risk, treatment needed and cost. We will identify what treatment can be postponed so as to not affect the overall prognosis or treatability of your teeth. We discourage spreading treatment over time if in doing so exposes you to multiple recovery times or multiple treatments with antibiotics and other medications used to control infection or pain.
Financing

You may wish to consider using appropriate financing to help fit the dental treatment you need and want into your life. This can allow you to enjoy your new smile earlier, probably with a lot less disruption to your life and probably less overall cost.
Financing allows more of us to get what we want, because it helps us fit things we want into our existing cash flow and into our lives. Financing is frequently a more effective approach to paying for complex dental treatment rather than “spreading out treatment over time” (mentioned above) – especially when combined with other methods described below.
Fortunately, prime interest rates currently are low. Secured Credit Lines are often the most cost effective way to borrow money. Many major banking institutions offer secured and unsecured credit line loans and other types of consumer loans. These loans are often “open” and can be paid down at any time as funds become available to you.
Secured Credit Line loans can be especially cost effective when they are combined with the cost reduction benefits related to i) Health Spending Account, ii)Medical Expense Deduction and/or iii) Dental Insurance

Dental Insurance

Some of the costs associated with the dental examination, x-rays, fillings, root canals, some reconstructive gum treatment, crowns, bridges or dentures may be covered by dental insurance plans. Some companies offer Health Spending Accounts of various amounts to their employees as a benefit. These funds may be directed towards any dental treatment including implant related treatment.
To date, many insurance plans have limits on the coverage they will allow for dental implants. Some insurance companies offer some limited help towards the cost of teeth (crowns, bridges or dentures) attached to dental implants.
After an examination with our doctors, our office staff will provide you with a detailed estimate of the cost of your proposed treatment. This estimate can be sent to your insurance company so that you can be aware of your benefit coverage before the treatment begins. This is important if you depend on these benefits to defray your treatment cost. Our staff will work with you and provide the necessary claim information to help you get reimbursed for any eligible dental treatment.

Health Spending Account (HSA)

The Government of Canada decided years ago, that they wanted to allow individuals to take more responsibility for the costs of their health care expenses through a “Health Spending Account”. A HSA allows you to fund the costs of your health expenditures with pre tax dollars, greatly reducing the cost to you. In some cases, the use of an HSA can result in savings of 30-40% per year for your medical or other health related services. This is far beyond the savings received from a “Medical Tax Credit” mentioned below.
We have found Benecaid Health Benefit Solutions Inc, a company that can help you set up your personal or family “Health Spending Account”. Benecaid also has a mechanism for working directly with your employer to direct part of your “before tax money” into such an account. This is a tremendous benefit to you and your family.
For those of you who have your own business, there are ways to make “before tax payment” of your medical and dental care even easier. Please visit the Benecaid website ( HYPERLINK "http://www.Benecaid.com" www.Benecaid.com) for more information. Please note our office has no affiliation with this company.
Some insurance companies are also starting to offer a “Health Spending Account” as part of an employer’s benefit package. The annual limit of this type of account is usually around $1000 but varies from company to company. This benefit can help you towards achieving your health care goals.
Medical Expense Deduction

The Government of Canada has something called a “Medical Tax Credit” on their income tax forms. Depending on your tax bracket and the size of your Medical/Dental Expenses you may be eligible for a 15% to 22% tax refund.
Timing can be important. If your dental expenses are paid by Dec 31st you may get the tax refund by April of the next year (4 months later). If you financed your dental treatment, this money could be used to pay down your dental related loan to further reduce your monthly payments.
The Medical/Dental Tax Credit has an annual personal responsibility contribution of 3% of your net income up to a maximum personal contribution of $2011 per year. Every dollar spent on Medical/Dental expenses over and above your personal contribution is used to calculate your Tax savings. Therefore, it is often better to pay the entire cost of dental care in one calendar than to spread cost over two or more years and have your tax savings reduced by additional personal contribution requirements. Please read the current information about this Government benefit or talk to your tax consultant to better understand the beneficial impact of this deduction on your actual treatments.

After considering the above information, it may still make sense for you to divide up your treatment to help fit it into your life. We should talk about this at our “Consultation appointment” or with our Patient Care Coordinator, so that we can discuss the issues that can affect your results and try to meet your expectations.
We hope this information is helpful. If you have any questions please feel free to ask our knowledgeable staff.

“Humber Valley Dental – We’re Proud of Our Patients’ Smiles”