It’s possible to lower out-of-pocket health care costs by understanding what your health plan covers, what it does not cover and how to make the most of every dollar spent on health care and health insurance. Blue Cross Blue Shield of Delaware offers these suggestions for optimizing a health care budget this year:
Stay in-network. Make sure your doctor(s), laboratory and hospital are a part of your health plan’s provider network so you save on copays and coinsurance amounts.
Have a referral. Before you see a specialist, check to see if you need a referral and, if so, find out how to request one. Without a referral, you may have to pay for services at the full out-of-pocket cost.
Use alternatives to emergency services. A visit to the hospital emergency department is generally unnecessary for issues such as the flu, minor cuts and sprains, or urinary tract infections. Overall costs are usually lower at medical aid units and urgent care centers. Check your health plan’s provider directory for an MAU nearby.
Consult with your physician about alternative surgical locations. Depending on your health condition, you may be able to schedule your elective surgery at an ambulatory surgical center.
Take the tests. Receive the screenings, tests, vaccines and other care that your plan covers, as recommended by your doctor. When you and your family stay healthy, you can avoid doctor's visits and time off from work.
Take your medicine. To receive the full benefit of your medicine, remember to take the recommended dosage for as long as your doctor prescribes it. People who take their medicine(s) as prescribed need less health care—and less expensive care. If you don't understand how to take your medicine, ask your doctor or pharmacist.
Find the best price for the medication you need. Always ask if a generic prescription drug or an over-the-counter drug would be best for you. Some generics are up to 80 percent less expensive than brand names, and also have the lowest copays. For any brand-name drug, research the manufacturer before you fill the prescription. Then check its website for any discount coupons or free copay programs that may be available for that drug.
Use your health flexible spending account dollars. If you don’t use the money that you have contributed to your account, you'll lose it at the end of the year.
Tuesday, February 14, 2012
What You Need to Know about the Small Business Health Care Tax Credit
How will the credit make a difference for you?
For tax years 2010 through 2013, the maximum credit is 35 percent for small business employers and 25 percent for small tax-exempt employers such as charities. An enhanced version of the credit will be effective beginning Jan. 1, 2014. Additional information about the enhanced version will be added to IRS.gov as it becomes available. In general, on Jan. 1, 2014, the rate will increase to 50 percent and 35 percent, respectively.
Here’s what this means for you. If you pay $50,000 a year toward workers’ health care premiums – and if you qualify for a 15 percent credit, you save … $7,500. If you save $7,500 a year from tax year 2010 through 2013, that’s total savings of $30,000. If, in 2014, you qualify for a slightly larger credit, say 20 percent, your savings go from $7,500 a year to $12,000 a year.
Even if you are a small business employer who did not owe tax during the year, you can carry the credit back or forward to other tax years. Also, since the amount of the health insurance premium payments are more than the total credit, eligible small businesses can still claim a business expense deduction for the premiums in excess of the credit. That’s both a credit and a deduction for employee premium payments.
There is good news for small tax-exempt employers too. The credit is refundable, so even if you have no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax withholding and Medicare tax liability.
And finally, if you can benefit from the credit this year but forgot to claim it on your tax return there’s still time to file an amended return
For tax years 2010 through 2013, the maximum credit is 35 percent for small business employers and 25 percent for small tax-exempt employers such as charities. An enhanced version of the credit will be effective beginning Jan. 1, 2014. Additional information about the enhanced version will be added to IRS.gov as it becomes available. In general, on Jan. 1, 2014, the rate will increase to 50 percent and 35 percent, respectively.
Here’s what this means for you. If you pay $50,000 a year toward workers’ health care premiums – and if you qualify for a 15 percent credit, you save … $7,500. If you save $7,500 a year from tax year 2010 through 2013, that’s total savings of $30,000. If, in 2014, you qualify for a slightly larger credit, say 20 percent, your savings go from $7,500 a year to $12,000 a year.
Even if you are a small business employer who did not owe tax during the year, you can carry the credit back or forward to other tax years. Also, since the amount of the health insurance premium payments are more than the total credit, eligible small businesses can still claim a business expense deduction for the premiums in excess of the credit. That’s both a credit and a deduction for employee premium payments.
There is good news for small tax-exempt employers too. The credit is refundable, so even if you have no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax withholding and Medicare tax liability.
And finally, if you can benefit from the credit this year but forgot to claim it on your tax return there’s still time to file an amended return
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