Keep it Simple Today: Examine your Explanation of Benefits Form from your insurance company, staple it to your original bill, keep a file listing the out of pocket expenses as listed on the EOB (Explanation of Benefits). Especially in times when we are actually being treated for some ailment, explanation of benefits forms pile up, often with bills. Slowly, as we become more comfortable with the knowledge that everyone needs medical care at one time or another and that they too are receiving these mailings, we start to glance at these forms.
First, we are now at the beginning of our benefits election year. Our first appointments will be reimbursed at a specific rate but when we look at the "Patient Responsibility" column, we notice that most if not all of the expense is our responsibility.
Deductibles are now in play. The explanation of benefits will also explain how much money has gone towards your deductible, the amount you pay BEFORE insurance kicks in.
Perhaps the form goes into a pile again BUT before we do so, open a file that lists how much you are responsible for, this amount may or may not qualify you for a medical expense deduction...CHECK WITH AN ACCOUNTANT to see whether that deduction is available when your expenses amount to 7.5% of your adjusted gross income. Once you've put this number in your file, you can put the explanation of benefits form in a folder...hopefully matched up with the original bill.
