Save on Medical Expenses

Pay Less for Doctors and Pharmacy Prescriptions

Medical Expenses got you down?



These days, it's difficult to save significant money on health care and prescription drug costs.

There are a few strategies that can be implemented to save money on these rising costs.

These tips are geared towards people WITH health insurance.

If you don't have health insurance, check out programs in your area that can give you free or reduced health care.

Flexible Spending Accounts

Have you checked out your husband's benefits plan recently?

His company might participate in an FSA, a Flexible Spending Account.

Generally, FSAs are in two different categories: Child Care and Medical Expenses.

Since we are Stay at Home Moms, we do not qualify for the Child Care accounts, so I will only talk about the Medical Reimbursement Accounts.

You set aside pre-tax dollars from each paycheck, which go into your Flexible Spending Account.

Once you spend money that qualifies as medical expenses, you get reimbursed from your FSA.

So what's the big deal?

Because this money is pre-tax, meaning, it is taken out of his check before taxes are withheld, its like getting free money from Uncle Sam.

This is especially important if you do not itemize your tax deductions because you do not have enough deductions, or you just don't want to be bothered.

Your savings is whatever tax bracket you are in.

You do need to estimate before the year begins how much you will want to place into your FSA.

Generally (please note each plan may vary slightly) the following things are covered in a Medical Expenses Flexible Spending Account:



The list is quite large, and usually covers much more than any medical insurance.

Once you have decided how much you will place into your account, that total amount will be divided by how many paychecks you get a year, and then that amount will be taken out of each check, pre-tax.

Example:

• You would like to contribute $1,500 into your FSA
• You get paid every other Friday
• You would have $57.69 taken out of each check

The nice thing about FSAs is that you get reimbursed as soon as you spend the money.

Meaning, if you have a $500 insurance deductible, which you spend in January, you do not have to wait for your account to reach $500 before you are reimbursed.

Your account shows the entire amount you will accumulate for the year at the beginning of the year.

The only bad part about an FSA is that if you don't use it, you lose it.

So if you put $1500 into your Flexible Spending Account but only use $500, that extra $1000 is gone. Forever.

Your FSA is good for one calendar year, and you have a couple months to apply for previous reimbursements the next year.

Some people are hard pressed to be "reimbursed", and find it difficult to essentially wait for a rebate check on money already spent.

Many companies are offering FSA debit cards, branded with MasterCard or Visa. Your card is set with your year's worth of FSA contributions, and can be used at time of service.

This eliminates the need for you to apply for a refund.

It's important to note that if you do itemize your taxes, FSA contributions are not deductible a second time.

Tax Deductions

Check with your tax accountant. You may be eligible for tax deductions on your medical expenses.

You will need to keep careful records of all your expenses. These will include:

• Mileage to and from your Doctor/Treatment Centers
• Medical Procedure Payments/Co-Payments/Deductibles
• Prescription Medications
• Medical Equipment
• Weight Loss Programs like Weight Watchers

If you itemize your taxes, these expenses may be deductible, depending on your situation. You MUST itemize your taxes in order to receive these deductions.

Bottom line: keep good records.

Also important to note: if you use some of these expenses with your FSA account, you can't "double dip" and claim them on your taxes too. It's one or the other.

If you spend more on medical expenses than you placed into your FSA account though, you can claim the difference in a tax deduction.

Mail Order Pharmacies

For saving on prescription medical expenses, mail order pharmacies might be an option for you.

Check with your health insurance company.

Many offer huge discounts on prescription medication through their mail order pharmacy.

For example, using Express Scripts, we can get 3 months worth of prescription medication for the price of 2 months co-pays, with free shipping.

This is good if you are on a reoccurring prescription, which must be filled monthly.


And remember, you can use your FSA account to pay for it.

Prescription Gift Cards

If you do not have access to a mail order pharmacy, or if your prescriptions are occasional, your best bet to save money on prescription medical expenses is to take advantage of Prescription Gift Cards.

If you look through the Sunday paper, or call around to pharmacies in your area, you may find that they will offer you a gift card to their store for bringing in a new or transferred prescription.

These gift cards generally range from $10-35, though most are $25.

The gift cards usually cannot be used for more prescriptions, but can be used for anything else that you would like.

You can buy milk and bread with them or even store them up for use on holidays.

Usually, you will find a coupon for the gift card offer in the store's flyer. These are not done all the time, but sporadically.

If you cannot find a coupon, ask at the pharmacy or you can even find them on eBay.

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