The IRS Deductions Blog

Posts Tagged ‘coordination of benefits deductible’

Question: HSA Coordination of Benefits?

My wife and I both have our own HSA health insurance with our employer and our children are covered under both plans. My plan is primary and my wife’s is secondary for the children. We have not met deductible on my plan, but have met the $2600 deductible in my wife’. plan. My child’s hospital billed primary plan $2500 – primary plan’s negotiated rate is $2100 that was applied to deductible. Secondary plan’s negotiated rate is $2500 (i.e., same as hospital bill) – secondary plan pays 90%, 10% is co-insurance. That is, insurance pays $2250 – but the hospital is owed only $2100. How does the coordination of benefits work?? What is paid by the plan and what do I pay out of pocket?

Answer: How the two plans coordinate, depends on those two plans. No one here is going to be able to work that out – you’ll have to talk to the secondary carrier. I seriously doubt they’re going to pay the full amount of $2100.

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New ABILITY Product Offers Hospital Administrators Real-Time Benefits Verification Solution

ABILITY Network Inc™, the nation’s largest and most secure Direct-enabled health network, announced today the launch of ABILITY CHOICE Eligibility, a solution offering real-time, patient eligibility and benefit verification.

It is a No Crying Shame to be in the Protest at AG Bell Conf

Question: Are inventory donations to a 501 (c)3 organization tax deductible? Or only monetary donations?

I’m located in Wisconsin and have a small side business in antiques and collectibles. I belong to a non-profit club and donated 15-20 pieces of vintage/depression glass to a charity auction benefiting the club. Would these items be tax deductible? My cost or the sale price at auction? I have records to back up the donation. Thanks in advance for your help.

Answer: Most “non-profit clubs” are not 501(c)3 organizations, so that’s the first thing to find out.

Non-cash donations to a 501(c)3 organization are deductible. The determination of the deduction, and the requirements for recordkeeping, are tricky, and if the value is significant, you might want to talk to a CPA about it (NOT Block or Liberty or Hewitt). There are different rules depending on whether the contribution is under $250, over $500, or in between.

Read publication 561 (download at irs.gov) for info on valuation.

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Lower your 2009 tax bill before new year starts

Though good tax planning can take weeks and even months, there are some last-minute things you can do now to lower your 2009 tax bill.

2009 Open Enrollment High Deductible Health Plan Prescription Benefits