The IRS Deductions Blog

Archive for December, 2008

Question: health insurance covers pregnancy?United Health?

My wife had a baby through C section. She also had the epidural and stayed in the hospital for about 4 days. Although our insurance paid out a large portion of it we’re still getting charged about a couple thousand dollars of it. I have Choice Plus United Health. Does this sound right? Any experiences?

Answer: You can easily check your minimal health care rates in internet, for example here – healthplans.bebto.com

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Happenings

TUESDAY, DEC. 29

Health Insurance Facts : How to Get a Health Insurance for Low-Income Families

The senior citizens need extra attention and care for their physical health and the insurance companies understand this very well. The supplemental Medicare companies in California are providing a huge variety of offers under Medicare supplement insurance for senior citizens. Those who are living their retired life with fixed income; they can manage their healthcare needs (which do not come under their original healthcare insurance policy) with the help of these policies. If you do not have much knowledge of the subject and would like to know more about supplemental Medicare in California, you are on the right webpage. It is easy to get confused by the variety of supplemental Medicare offers available in the market. If you already have Medicare part A cover, part B can be a wonderful complement to the first policy.

Are you still wondering how can Medicare part B complement part A? Only your inpatient hospital visits are covered under part A. The costs arising from doctor appointments and outpatient hospital care are taken care of by part B. Those looking to cover prescription medications should buy part D insurance cover.

Another additional plan available to senior citizens is known as Managed Care Plan. In this plan, a group of doctors and hospitals get their payment from medical insurance held by the client (and similar other clients). These hospitals and doctors, in turn, take care of these senior citizens. Some times, these Managed Care Plans are directly offered by supplemental Medicare insurance companies. You just need to buy Medicare insurance whereas the rest of managed care responsibility lies on the insurance company. You can, however, survey the doctors and hospitals covered by the plan. It is better to compare these policies since every scheme may have a different network of doctors and hospitals working for them.

Senior citizens are often worried over joining Medicare because it appears very confusing to them. It’s correct that Medicare is complicated to some extent, though the service is especially beneficial to the seniors because as their bodies age, their health tends to deteriorate. Medicare is based on Health Maintenance Organization System, wherein those opting for Medicare receive medical assistance from private medical practices, who in turn receive their payment from the government for their services. A Medicare member can also use services beyond Medicare coverage; they simply have to pay for it themselves. There are numerous Medicare options available and it’s important you took enough care to understand these policies on offer.

Prescription drugs are covered under part D and you can come across many prescription drug programs offered by various private insurance companies. In a part D program, you are required to pay a monthly premium along with co-payment facility for medicines proscribed by a doctor. Usually generic medicines have a lower co-payment provision whereas new medicines have a higher co-payment provision.

If you come under regular Medicare program, you will have to pay some deductible before insurance companies start paying for your healthcare. Basic Medicare does not cover all your medical care requirements, and that’s where supplemental Medicare programs come into the picture.

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Seniors fret as Democrats target mismanaged Medicare Advantage

MIAMI — Insurers constantly caution seniors that their Medicare Advantage perks such as hearing aids, dental payments and even gym memberships will fizzle if Democrats get their way and cut government subsidies for them. But tens of billions of Medicare dollars funneled through insurers also pay for extras that never reach beneficiaries: multimillion-dollar salaries, executive retreats in Hawaii …

Question: Tips for those who are self-employed?

I have been self-employed since late April of this year. I work as a medical transcriptionist and work for 1 company. I have good record of my direct deposits and have been paying taxes quarterly (although I only work part-time, so I really do not make a ton).
What I am wondering is what I should be saving as far as tax deductible items. I have been told by several friends/family members who are self-employed that I should be saving every little receipt, utility bills, etc. in order to deduct them on my taxes.
Does it really add up enough to make it worth having to save everything and keep track of all that? Especially since I make very little money at this point?

Answer: It is definitely worth keeping all the receipts. Each individual item may not seem like much but in the end it may enough to lower your taxes or increase your refund. Talk to an accountant to find out the formula for calculating the utility allowance. You can’t deduct the entire bill, just a portion of it (it is based on the square footage of the room you use to work from) I am not sure what all is involved with your line of work, but you can also, deduct the expenses for faxing, telephone calls, any computer software you use (including tax prep software), printer ink(if you use it) stamps,shipping,paper, pens, pencils, sharpeners. You can also deduct accountant/ CPA fees.

It will also help you when you file next years taxes(if a loss is posted this year, it can offset next years taxes)
Keep everything.

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Briefly: March 31

Read about what’s happening in and around Plymouth.

Self Employment Tax Tips : Tax Tips for Home Business Owners

Question: Canada Income Tax – Medical expenses paid by my wife’s insurer?

My wife and I both have health insurance. When I do my income tax, for the medical expenses deductions part, say I paid 20,000 last year and my insurance reimbursed me 16,000 and my wife 4,000… can I claim the 4,000 part since it was paid to her?

Answer: Of course not. Why should the Canadian taxpayer pay you for cost for which you were reimbursed?

That would be a pure gain on your part, not what the medical deduction is intended to cover.

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Tax Tip: Credits and Benefits for Your Family

From January until the end of March 2010, the Canada Revenue Agency (CRA) is issuing weekly tax tips with information geared towards specific groups that are most affected by new and existing credits, deductions, and benefits in the 2009 tax-filing season. This tax tip focuses on child and family benefit recipients.

James White Makes A Pledge During Therapy

Question: What is the point of a health insurance plan if you never met your deductible?

I am 22 and applying for my first health insurance. I do not need much medical services, and want a low affordable premium. However, when I look at sites such as Blue Cross, it seems that low premiums go with high deductibles. I don’t think I would ever meet the yearly deductible, and thus, cannot get any health services covered. So what is the point of such a plan? Thanks.

Answer: That’s a fair question and, to be honest, shows how “differently” people consider health insurance from, say auto or fire insurance. Here’s the question for you to consider:

Do you want health “insurance,” or “health care financing?”

“Insurance” helps you pay for unforeseen expenses that you can’t handle yourself (like, say, that $87,000 hospital/surgical bill after the car wreck, etc.). “Health care financing,” like anything else you usually finance, lets you “make payments” to buy things that you don’t want to pay for all at once (like, say, that $2300 big screen HDTV).

Here’s a few tips:
1. Buy a plan with a big deductible ($2,500 – 5,000) to keep your cost down. REMEMBER: even with a big deductible you can still find plans with the things you like: doctor and drug copays.
2. Stick with the “brand name” companies, like Blue Cross, Humana, Aetna, etc. There are a lot of other plans that “look good” but, if or when you have that big claim, they’ll vanish like an honest politician.
3. Talk to a broker who specializes. Visit NAHU.org (see below) to find one near you. NAHU is the professional association of brokers like me who specialize in health insurance.
4. Get you own quotes online. Visit my site (below) or go to Norvax.com to get prices.

Hope this helps a bit!

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New Ohio Highway Patrol superintendent sworn in

The Ohio Highway Patrol now has a new leader. David Dicken was sworn in as the Superintendent of the agency earlier today. He says his main goal is to have the patrol cooperate more with local law enforcement. And he says he wants to reorganize the agency a bit. WKSU’s Jo Ingles reports.

Retire Like 007 with HSA’s & HDHP’s “Health Savings Accounts