Itemization and Health Insurance
Posted by Sheri Harris on Thursday, August 25, 2011
Under: Problems and Solutions
Problem
Health insurance is necessary. It is also expensive. There are many different insurance companies and health discount plans available. Patients choose insurance plans based on affordability and plans they know many physicians participate with. Medicaid and Medicare are not considered plans of choice because these plans are the ones that are designated or put in place for those people who are retired or disabled or without means to afford what is considered "commercial insurance". There's also a saying called "get well soon". There are of course other insurance company options that participate with Medicaid or Medicare but you still have to choose a plan that many physicians participate with. If Moonglow discount plan costs you $12.95 a month for medical, hospital, prescription drug,laboratory,diagnostic imaging, chiropractor, dental, vision, legal assistance,diabetic supply,durable medical equipment, hotel and rent a car discounts and discounts for restaurants and food; that sounds like a bargain. But once you purchase the plan and find that many physicians in your areas do not accept or participate with it, then what good is it? Especially, if you end up paying out more than you would for a monthly premium of insurance that does not have a high deductible once you visit a physician and a few specialists. If you have insurance with a high deductible would you be best off with a discount plan simply because it would be cheaper to pay the $12.95 a month in hopes that you will find a few doctors or hospitals that will take you in as a patient and only charge you and your spouse and children between $60-$75 a visit. and if laboratory and diagnostic tests only cost you between $100-$200 and then the Moonglow discount plan reimburses for the rest then the discount plan could probably work to a persons benefit. Because as a family you may only spend $2,600 per year in total which includes your monthly payments to the Moonglow discount plan and the money you were responsible for paying out to the doctor at the time of vist, hospital expenses could only amount to $1,500 more per year. As opposed to the $5,000 deductible and the montly premiums of several hundred dollars each and co-insurance you must pay for before commercial insurance will pay for any of your visits to the doctor or hospital. Plans of this nature are probably considered the very healthy family discount plan or rare illness category. This topic of discount actually brings me to this weeks subject of itemization.
Many people do not itemize on their taxes. Why? because they do not have enough of an expense report full of deductions that would facilitate one to itemize. This should not be a bummer or an exclusion on the part of the IRS to those people that do not have enough expenses to itemize. So what is the problem? The problem seems to be that the standard deduction one uses in place of itemization may not include factors such as decuctions for health insurance premiums and other medical expenses. This is where deduction and or tax incentive should apply to all and not just those with big ticket items they can submit to their accountant during tax time. I ask myself constantly, what did I do that was so bloody wrong that I was unable to afford a car, house among other things on my own? It could be that the spiritual nature of foundation or rubble has me helping out somewhat?
Solution
Since there are those who do not itemize and also pay out their own health insurance they should be entitled to a tax credit or deduction of sorts for their health insurance at tax time. Insurance deduction should not only be for those who itemize and unless the IRS is creating a practice of providing more of a benefit to those who itemize vs. those who use the standard deduction based upon economic factors including those who make large sums of money as opposed to those who make very little money and therefore do not itemize. This could mean that those who use the standard deduction are getting less of a deduction as determined by the IRS as opposed to the people that itemize because of their income and ability to itemize certain expenses; especially if one owns their own business or works for themselves. This in itself makes it seem that the IRS is biased with regards to deduction policies towards those who use the standard deduction and also pay their own healthcare premiums. This is because they are not allowed to deduct a portion of their health insurance or recieve a tax credit as compared to the amount that those who itemize their taxes are able to recieve, because they are allowed a tax deduction regarding their health insurance. Itemization for health insurance deduction is the unfair and unjust divide. Since those who benefit from such tax incentives or breaks are those who have high incomes include expenses that amount to more than just the standard deduction. True, a person may take the standard deduction which covers expenses that are not listed as itemized. But, with the cost of health insurance the standardized deduction may not include that ratio or percent of money that should be allowed for health insurance deduction. People pay a lot of money for healthcare premiums. Insurance should not be considered a luxury item. In it's necessity no itemization should be necessary in order to recieve the same deduction entitlement as those who itemize do. The IRS should stop treating people as though they live under the rubble and who are supporting those who walk the surface of it; and allow the tax deduction or incentive for health care and premiums to be allowed for those who use the standard deduction. To disallow it would be prehistoric, don't you agree?
Health insurance is necessary. It is also expensive. There are many different insurance companies and health discount plans available. Patients choose insurance plans based on affordability and plans they know many physicians participate with. Medicaid and Medicare are not considered plans of choice because these plans are the ones that are designated or put in place for those people who are retired or disabled or without means to afford what is considered "commercial insurance". There's also a saying called "get well soon". There are of course other insurance company options that participate with Medicaid or Medicare but you still have to choose a plan that many physicians participate with. If Moonglow discount plan costs you $12.95 a month for medical, hospital, prescription drug,laboratory,diagnostic imaging, chiropractor, dental, vision, legal assistance,diabetic supply,durable medical equipment, hotel and rent a car discounts and discounts for restaurants and food; that sounds like a bargain. But once you purchase the plan and find that many physicians in your areas do not accept or participate with it, then what good is it? Especially, if you end up paying out more than you would for a monthly premium of insurance that does not have a high deductible once you visit a physician and a few specialists. If you have insurance with a high deductible would you be best off with a discount plan simply because it would be cheaper to pay the $12.95 a month in hopes that you will find a few doctors or hospitals that will take you in as a patient and only charge you and your spouse and children between $60-$75 a visit. and if laboratory and diagnostic tests only cost you between $100-$200 and then the Moonglow discount plan reimburses for the rest then the discount plan could probably work to a persons benefit. Because as a family you may only spend $2,600 per year in total which includes your monthly payments to the Moonglow discount plan and the money you were responsible for paying out to the doctor at the time of vist, hospital expenses could only amount to $1,500 more per year. As opposed to the $5,000 deductible and the montly premiums of several hundred dollars each and co-insurance you must pay for before commercial insurance will pay for any of your visits to the doctor or hospital. Plans of this nature are probably considered the very healthy family discount plan or rare illness category. This topic of discount actually brings me to this weeks subject of itemization.
Many people do not itemize on their taxes. Why? because they do not have enough of an expense report full of deductions that would facilitate one to itemize. This should not be a bummer or an exclusion on the part of the IRS to those people that do not have enough expenses to itemize. So what is the problem? The problem seems to be that the standard deduction one uses in place of itemization may not include factors such as decuctions for health insurance premiums and other medical expenses. This is where deduction and or tax incentive should apply to all and not just those with big ticket items they can submit to their accountant during tax time. I ask myself constantly, what did I do that was so bloody wrong that I was unable to afford a car, house among other things on my own? It could be that the spiritual nature of foundation or rubble has me helping out somewhat?
Solution
Since there are those who do not itemize and also pay out their own health insurance they should be entitled to a tax credit or deduction of sorts for their health insurance at tax time. Insurance deduction should not only be for those who itemize and unless the IRS is creating a practice of providing more of a benefit to those who itemize vs. those who use the standard deduction based upon economic factors including those who make large sums of money as opposed to those who make very little money and therefore do not itemize. This could mean that those who use the standard deduction are getting less of a deduction as determined by the IRS as opposed to the people that itemize because of their income and ability to itemize certain expenses; especially if one owns their own business or works for themselves. This in itself makes it seem that the IRS is biased with regards to deduction policies towards those who use the standard deduction and also pay their own healthcare premiums. This is because they are not allowed to deduct a portion of their health insurance or recieve a tax credit as compared to the amount that those who itemize their taxes are able to recieve, because they are allowed a tax deduction regarding their health insurance. Itemization for health insurance deduction is the unfair and unjust divide. Since those who benefit from such tax incentives or breaks are those who have high incomes include expenses that amount to more than just the standard deduction. True, a person may take the standard deduction which covers expenses that are not listed as itemized. But, with the cost of health insurance the standardized deduction may not include that ratio or percent of money that should be allowed for health insurance deduction. People pay a lot of money for healthcare premiums. Insurance should not be considered a luxury item. In it's necessity no itemization should be necessary in order to recieve the same deduction entitlement as those who itemize do. The IRS should stop treating people as though they live under the rubble and who are supporting those who walk the surface of it; and allow the tax deduction or incentive for health care and premiums to be allowed for those who use the standard deduction. To disallow it would be prehistoric, don't you agree?