What is subsidized health insurance

what is subsidized health insurance

Long-Term Care Insurance, Unsubsidized Health Insurance, and Excess Medical Expenses

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Long Term Care Insurance, Unsubsidized Health Insurance and Excess Medical Expenses

There are two separate deductions included in this line:
  • Unreimbursed Premiums for Long-Term Care Insurance Plans and Unreimbursed Premiums for Unsubsidized Health Insurance Plans, and
  • Excess Medical Expenses.
Unreimbursed Long-Term Care Insurance Premiums and Unsubsidized Health Insurance Premiums

Enter the amount you paid during 2005 for unreimbursed long-term care insurance premiums for you, your spouse and your dependents, and for unreimbursed and unsubsidized health insurance premiums for you, your spouse and your dependents. Do not include any amounts excluded from federal adjusted gross income under a cafeteria plan or any flexible-spending plan.

An unsubsidized health insurance plan is a plan where your current or former employer or your spouses current or former employer does not pay for any part of the plans costs and does not reimburse you or your spouse for any part of the plans costs. Most people who receive wage or salary income from an employer participate in one or more subsidized plans and therefore are not participating in an unsubsidized health insurance plan. If you are unsure, check with your employer.

Example: Martha has a

health insurance plan through her employer. She has $50.00 deducted from her paycheck each month to pay for her portion of her health insurance premium costs. Her employer contributes $450.00 each month towards the health insurance premium costs that actually total $500.00 each month. This is a subsidized health plan, so Mickie is not participating in an unsubsidized health insurance plan. Mickie may not use her $50.00 monthly payment here.

Note: You may not enter any unsubsidized health insurance plan premiums if you qualify for Social Security health benefits under Medicare.

Example: Mickie is retired and qualifies for Medicare. She pays $50.00 each month for supplemental health insurance and $20.00 each month for Medicare B premiums. Mickie may not use her $50.00 or $20.00 monthly payments on lines 2a and 2b of the worksheet but can include these amounts on line 1.

Excess Medical Expenses: Some examples of qualifying medical and dental expenses include unreimbursed costs for the following:
  • Insurance premiums for medical and dental care plans (including both unsubsidized and subsidized health plans, Medicare premiums and supplemental Medicare insurance)
  • Premiums for long-term care insurance,
  • Prescription medicine or insulin,
  • Medical examinations and treatment by a certified health professional,
  • Hospital costs and nursing care,
  • Eyeglasses, hearing aids, braces, crutches and wheelchairs.
Note: You must reduce the amount of health insurance premiums by the amount of the self-employed health insurance deduction that you claimed on line 29 of your federal Form 1040.

Source: www.olt.com

Category: Insurance

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