Duncan Roberts

Yes, there may be other things that will be as well like life insurance if they are offered.

Duncan Roberts

It might be. You will pay at the point of service unless they let you off, ER visits will usually let the co-pay slide and bill you. The service provider has no idea what coverage you have other than the co-pay amount printed on your insurance card. They will charge you that and then bill your insurance. The insurance will pay out, or not pay out, based on your plan and contracted rates with the service provider and then any remaining will be put on your account and you will get a bill. Some places are quick and within a month you will have your bill, some are not and you may get a bill a year or so later.

The thing you have to realize is there are thousands and thousands of insurance companies, most are localized, and then thousands of different plans and thousands of variations on those plans. It's impossible for doctors, hospitals, etc to know what will be covered under your specific plan or how much they will get reimbursed. That's why it's essential you know the ins and outs of your plan so you don't get stuck with an unexpected bill. Also remember that people get it wrong. You may get a bill because the provider submitted the claim incorrectly and they need to fix it. Billing errors are very common.

E3only

Got it thanks. I am used to carrying a public and a pvt health insurance card. If I avail private health insurance at (say) a dentist, they just swipe the card during billing which automatically checks with the insurer to rebate. In 3 seconds, they then tell me what my oweing is and I pay before I step out. End of story!

Here, as you guys explained - I need to know what my coverage is and once I am billed, need to check it before I pay!

I am learning slowly! Some of the things are so fanctasic here if I comepare them. But sometimes make me wonder - so behind times but I am realizing issues as we go so no complaining!

Duncan Roberts

Just wait until you get to banking.

E3only

God, that has been a bit of a nightmare.I was astonished to see the charges they have, min balance requirement, bill pay charges, pay anyone complications.

I can't get a credit card so trying to get secured card and that is taking for ever! I mean I have put a deposit/bond and they still need 5 days to decide? Can understand couple of days but a week just to decide is over the top.

Just getting used to all the things though

Giantaxe

The US spends almost 4% of its GDP on health care administration. It really is a stunning mess, especially as that figure makes no allowance for the time that individuals invariably spend dealing with billing questions/mistakes etc.

E3only

Don’t mean to drag on - this confuses me.

http://www.ehow.com/about_5232993_he...ductible_.html

Private Health Insurance
• The premiums that are paid for private health insurance can also be tax-deductible. The premiums for medical insurance and other expenses need to be included as itemized deductions on the tax return. In addition, a tax benefit will only be obtained if expenses exceed 7.5 percent of an individual's adjusted gross income (AGI). This means that 7.5 percent of AGI is deducted from the total amount of health insurance premiums paid to obtain the amount of the deduction

What if I do not itemize tax deductions and just get the standard deductions?

E3only

And I thought Australia was a rip off.

From what I am picking up Australia has a far better 'system' but not necessarily better 'insurance coverage'.

For instance, if I enrol for a pvt health insurance plan I need to pay for 12 months insurance premiums before I can avail say major dental or Pregnancy benefits for my wife. So if she falls pregnant and we have pvt insurance < 12 months old she wont be covered at all! We then would fall under public health insurance.

Even if we are covered by pvt insurance, there are heaps of 'exclusions' on what costs will be covered. It's frankly useless.

Sally Redux

IMO the whole system a colossal rip-off here.

Giantaxe

Tough luck - you don't get to deduct the proportion over 7.5% of your agi.

Duncan Roberts

1. Since your premiums are pre-tax they are already included in your deductions and don't need to be itemized.
2. Unless you spend over 7.5% of your income on healthcare expenses, not including insurance premiums, then you don't need to worry about it.
3. However you file your taxes you should have a check to see if itemizing will be better than just taking the standard deduction. Software or a CPA can do it easily.

E3only

Thank you kindly. The premiums will not be close to the 7.5% AGI.

The software you refer to is the TURBOTAX or something?

Giantaxe

Or, to be strictly accurate, the term "private health insurance" doesn't include group insurance provided by an employer. Employer-provided group insurance is currently not taxable to the recipient and is deductible to the employer. It doesn't figure into the 7.5% calculation for individual's deductions.

Duncan Roberts

Yes, or one of the many others.

Sally Redux

The 7.5% refers to other healthcare costs if the premiums are deducted pre-tax.