If you your employer offers a Flexible Spending Account or "cafeteria plan" we highly recommend you include a portion of the orthodontia fees in your annual plan election. Since orthodontic treatment is provided over an extended period of time, with an initial examination and installation, and monthly adjustments. There are Internal Revenue Service rules for reimbursement of eligible expenses through a Flexible Spending Account. The basic set of rules consist of the following:
- An individual may only be reimbursed for expenses incurred while a participant is in the plan.
- An expense is incurred when the service is performed not when it is billed or paid.
- The participant must submit documentation showing that the service has been provided.
- The expense must be reimbursed from funds allocated for the plan year in which the expense was incurred. Expenses or unused funds cannot be carried over to a different plan year.
- Claims for orthodontia expenses for adults must include a letter of medical necessity. Orthodontia treatment for adults is considered cosmetic and cosmetic services are not covered under flexible spending plans.