Insurance dilemma

Discussion in 'Business Operations' started by grass-scapes, Apr 3, 2005.

  1. grass-scapes

    grass-scapes LawnSite Bronze Member
    Messages: 1,552

    Ok, here goes,
    Just got married in February. I pay for my own health insurance through Blue Cross Blue shield of NC. I have the cheapest plan available with 5000 dollar deductible and 3000 out of pocket expense. They refuse to decrease my deductible due to blood pressure condition. I pay 126 a month.

    My wife has Blue Cross through her employer. it is better coverage with a 350 deductible. extra cost for her to add me on to her policy is $238 a month. Max out of pocket is 1250 per person. Now, my accountant says that I cannot deduct the cost of insurance through her at 100 percent but with my policy, I can. would you recommend a switch?
    Now, for a little background....Last year, I had a bout with Kidney stones, and I still owe money...I had to come up with the 5000 bucks plus the 3000 out of pocket. this is my second bout, and my doctor says Im prone to them. If it happens again, i will have to pay this. Also, Blood pressure medicine through my plan is 50 a month and through her plan is 40 for three months via mail order. IM leaning toward her plan, but was my accountant correct? am I not able to deduct my cost of insurance through her plan? I thought I read somewhere that someone here is deducting their cost as self employed. I hope I made myself clear on this. any advice would help me out.
  2. boatdude

    boatdude LawnSite Member
    Messages: 55

    I did a search and found this on the "turbo tax" website. The last paragraph is what is most important to you. It would appear that you will no longer be eligible to deduct the premiums even if you keep your separate policy since you/your spouse are eligible for "subsidised" coverage. Actually, putting aside the deductibility issue it sounds like your spouses plan is the one to go with (based on how much you expect to use the benefits). This is not tax advice...just my $.02. It sounds like your tax guy is pretty close to what turbo tax says.
    Best of luck.

    From Turbotax website:

    When Can I Take this Deduction?
    You can claim the deduction for any month you and your spouse weren't eligible to participate in a subsidized health plan of another employer (including your spouse's employer). It doesn't matter whether or not you actually participated in the subsidized health plan, you can only take the deduction if you weren't eligible to participate.
  3. fairwayCuts

    fairwayCuts LawnSite Member
    Messages: 161

    Not sure if this helps because I don't know if they offere it in your area but.. I've got med mutual with a 250 or 500 deductable, plus all the extras like a drug rider, vision, dental, and pay only $130/mo. Maby check them out. Like I said though it may not help if they dont offer it in your area.

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