Wednesday, November 12, 2008
Works for me Wednesday- Medical Flex Account
I elected to have the maximum amount taken out of our check this year to put into a Medical Flex Account which was $7500. I had four children in orthodontic treatment and two that had wisdom teeth removed and one that had adenoids removed. Then add in the trip to the orthopedic doctor with my son's broken foot and paying for my husband's high blood pressure medicine. Whew, it was an expensive year for medical expenses.
The money put into your check is before taxes so it reduces your taxable income. We saved $881.25 in taxes this year by having this put aside into the flex account.
Our account allows you to claim expenses online and through faxing the forms. I fill out the online form then print it and sign it. I then fax that with the copy of my doctor's bill or a copy of my reciept with over the counter medicine costs. We always have payment within two weeks, and ours is set up to be automatically deposited into our checking account.
The only drawback to the plan is that if you do not use the amount elected to be put into the account you lose it. But, the flex account is not just for doctor visits. It covers orthodontic care, eye care and lenses or glasses and solutions. It covers over the counter medicines. It covers prescription charges. Have a reasonable amout deducted that you are sure you can use.
I like that it is a set amount each check and the money is there waiting when I need to make a payment to a doctor or fill a prescription. Other than figuring out what to have put into the plan I do not have to have any other medical budget. I am keeping more of my money rather than paying taxes on it. I don't have to worry about expenses that come along. When you are sick or sitting in the emergency room you don't want to be thinking about money. It gives you a peace knowing that you have put the money aside for this expense.
Visit Rocks in my Dryer for more Works for me Wednesday posts.