Content Overview 
- Summary
- When You Need Routine Medical Care
- When You Receive A Medical Bill
- When You Have A Hospital Bill
- When You Have To Pay A Doctor
- When You Need Lab Tests
- When You Need Diagnostic Tests Such As X-Rays, MRIs or Mammograms
- When You Need A Medical Device Or Home Equipment
- When You Receive A Medical Treatment
- When Choosing A Health Insurance Policy
- When Using A Health Insurance Policy
- When You Need Medical Supplies
- Tax Advantage Plans Such As A Health Savings Account Or A Flexible Spending Account
- If You Get Paid On An Hourly Basis
Health Care: How To Save Money
Tax Advantage Plans Such As A Health Savings Account Or A Flexible Spending Account
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Using pre-tax dollars gives you more to spend on your medical expenses. Tax advantage health plans allow you to deduct pretax money from your paycheck to cover out-of-pocket medical expenses. If your tax rate is 25%, your pre-tax dollar is worth a full dollar. A dollar which is taxed is only worth seventy five cents to you. To put it another way, you save $250 for every $1,000 you spend. Actually, these pre-tax dollars are worth even more because they are not subject to Social Security and Medicare taxes.
To save the most money, it is advisable to put as much money as you can into a tax advantage health plan. Savings vary by tax bracket. You can contribute money to these accounts during an open-enrollment benefits period or when you have an event such as marriage or the birth of a child.
- If the plan is one like a Flexible Savings Account in which you lose the money not spent by year end, limit your donation to the amount you think you will spend on your health care and the other people who qualify.
- If you have a question about what costs are likely to be during the coming year, speak with your specialist or a knowledgeable person in his or her office.
Note all the expenses you can pay for from tax advantage plan. As a general matter, acceptable expenses are those that would generally qualify for the mental and dental expenses deduction for IRS purposes. To learn about those expenses, click here. Also check your plan to note the different people whose medical expenses are also included.
It's getting easier to maximize use of these plans.
- Drugstore chains generally provide receipts or customized lists of purchases that show which items qualify for tax advantaged plans.
- Many employers automatically debit co-pays and deductibles to providers who participate in their health-care plans. You don't have to go through the paperwork or delay of submitting claims.