Save money on medical expenses

I wrote this for others in my wellness class and I thought I would pass it along to all you as well. I hope it helps you save a little bit of money this year. Feel free to add to it.

Save Money on Medical Expenses

Generic drugs or “lowest cost alternatives”: Many health plans will cover the cost of a prescription drug only up to the cost of its generic equivalent. In other words, if a name-brand drug costs $20 and its generic costs $10, your health plan will cover $10. Ask your doctor if you can substitute a generic drug for your name-brand prescription. If a generic drug is not appropriate, ask your doctor to specify “no substitutions” so you can be reimbursed the full amount.

Save on deductibles: If your health insurance plan has a deductible on prescriptions, purchase long-term medications three months at a time.

Save on dispensing fees: Dispensing fees are an added cost pharmacies charges for their services. Dispensing fees vary greatly, so shop around. You can also search the internet for cost comparisons of pharmacies in your area.

Dental coverage: Insurers (such as Sun Life, Greenshield and Manulife) set their own price guidelines for dental procedures. You are responsible to pay the full amount your dentist charges you above this amount. It is your right to ask your dentist what he or she charges for each procedure.

Save on medical supplies: Health insurers usually allow you to buy no more than a three-month supply at once, so ask your doctor to write an “as needed” prescription. That way, you can buy more and save on deductibles and dispensing fees. (E.g., A diabetic may only need to test her blood sugar twice per day. If her doctor writes an as needed prescription for her blood test strips, she can buy more at a time than if her prescription limited her to two strips per day.)

Get a prescription: Some over-the-counter medications, medical supplies, and health services may be covered until your health insurance plan if you have a prescription for them. Examples are blood glucose meters, eczema creams, and massage therapy.

Save on prescriptions: Ask your doctor for samples of new medications.

Co-ordinate coverage: If you’re married or common-law and you have health and dental insurance coverage under both your employer’s plan and your spouse’s plan, you can submit expenses to both plans to receive maximum coverage. As well, you can submit your children’s expenses to both plans if they are covered under both plans. (E.g., Say your plan reimburses you $80 for a prescription that costs $100. You can submit the remaining $20 to your husband’s plan so you don’t pay anything.)

Shop around for “perks”: Pharmacies offer perks such as Airmiles or gift cards to attract your business. Safeway, for instance, provides free “sharps” bins while other pharmacies charge for them.

Withdraw from your company’s health plan: Many employer health and dental plans will allow you to “opt-out” of your plan (and receive a payout) if you have comparable coverage elsewhere (e.g., through your spouse’s plan).

Update your employer’s health plan coverage: Most employer health and dental insurance plans will allow you to change your coverage if your personal circumstances change. So, if for instance, your spouse losses his or her job, you can add him or her to your coverage within 30 days. Speak to your human resource manager for more information.

If your child attends university or college: Many post-secondary schools include a premium for health and dental insurance in their tuition fees. Students who have comparable coverage under their parents’ plans can “opt-out” of the school’s plan and receive a refund. You can find out more information about student health plans by contacting the students services department.

Make the Most of the Medical Expenses Tax Deduction:

Medical expenses can be deducted from your federal and provincial taxes. Expenses can include:
- premiums you pay for your health and dental insurance plan
- paramedical expenses such as chiropractic and massage therapy
- co-payments for expenses covered under your insurance plan such as prescriptions, dental coverage. (A co-payment is the amount you pay out-of-pocket and aren’t reimbursed by your health insurance.)

To maximize your deduction, if you are married and/or have children, you can combine your expenses and apply them to the spouse with the lowest income.

Each tax year, you can deduct all the expenses you have for a 12-month period. The more you spend during that time, the more you can deduct. Time your purchases and procedures so that you can group them together at once and receive a larger deduction. For instance, the year you buy your pump is the year you should buy new glasses and get your kid’s braces.

Many health insurance companies can provide you with a printout of all of your expenses for the year. You can submit this with your taxes instead of having to save your receipts.

For more information, visit www.cra-arc.gc.ca and search “medical expenses.”