The IRS Deductions Blog

Posts Tagged ‘care’

Question: Bullshit about pre-tax healthcare spending?

I think it’s such bullshit that I can’t set up a pre-tax healthcare spending account as an individual, just because my employer doesn’t offer it and I don’t have a High Deductible Health Plan. Does anyone know any alternatives to this? I pay thousands out of my net pay year in and year out, and will for life, for treatment not covered by my insurance. FU BCBS!
I know BCBS doesn’t make IRS regulations, I’m not an idiot thanks. It’s just that I have NEVER had health insurance to cover this particular joint problem, yet every other joint in the body is covered for most treatments and surgery. Ridiculous. America is the richest most powerful country on earth, and the dumbest. Who’s idea was it that health care of all things should be privatized? Decisions on a person’s health should not be made by a profit-driven entity.

Answer: The federal government set up the rules for the Health Savings Accounts. Not BCBS.

In order to qualify for a HSA – you have to participate in a high deductible health plan. Usually that means a deductible of 1000 (for individual) or higher.

Personally, I’m glad I don’t qualify for a HSA. My 500 individual deductible stinks enough. I’d really hate to have a 1000 ded each year.

However, your employer may offer a Flexible Spending Account.

It is similar to an HSA -only any money not used in it at the end of the year goes to the Flex company. You lose it. (With an HSA, the money can roll over from year to year).

I set my Flex to take out enough money to cover my deductible each year. I know I’ll usually use close to that. And, if you are reaching the end of the year and still have money in the account….go load up on Zyrtec and other over the counter medications that you use regularly and submit those receipts to get your money back.

A Flex account will cover non-covered treatment and is funded with pretax dollars also.

Check with your employer to see if they offer a Flexible Spending Account.

Also, if your medical expenses exceed 7% of your income, you can deduct the amount over 7% from your taxes. You can check the irs web site for more info on that.

Items on Amazon Right Now for High Deductible Healthcare Plans:

The Medicare Advantage Piece of the Healthcare Debate

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. However, tens of billions of Medicare dollars funneled through insurers also pay for extras that never reach beneficiaries.

High Deductible Health Insurance for Florida