Claiming Medical expenses on Med1 and VHI

[tosullivan]

I submit my tax returns each year on ROS and just filed for 2006. Every year I claim my medical expenses for my family through ROS.

However for tax year 2007 which I will be submitting in October this year, I am wondering how do I claim for my medical expenses.

I joined VHI thorough my company in the latter stages of 2006 and I have Plan B with Health Steps Gold, which entitles me to claim €30 for each GP visit, etc. The VHI is covering myself, wife & 2 kids.

Typical year I would have probably 15 GP visits @ €50 each (€750) plus prescriptions.

Can I for 2007 tax return, claim the €30 for each GP visit from the VHI and then the balance of each visit through the revenue? Is that how it works?

So instead of getting 41% back on the €500 (750-250) from the revenue which is €205, I would get back €450 from the VHI and 41% of (750-450-250)=€20.50 from the revenue?

Net gain of €265.50

 

[ClubMan]

Can I for 2007 tax return, claim the €30 for each GP visit from the VHI and then the balance of each visit through the revenue? Is that how it works?

Yes. You just claim MED1 relief on any otherwise unreimbursed expenses. So if a private health insurer refunds some of a charge then you subtract that amount and then claim tax relief on the remainder.

So instead of getting 41% back on the €500 (750-250) from the revenue which is €205, I would get back €450 from the VHI and 41% of (750-450-250)=€20.50 from the revenue?

You don't need to subtract €125/€250 from single/joint or family claims from 2007 onwards (you do for years prior to this). This "excess" was abolished last year and 100% of all qualifying expenses (less any reimbursement from private health insurance etc.) qualifies for tax relief. In your case it would be €750 (gross qualifying expenses) - €450 (VHI refund) = €300 (net qualifying expenses) @ 41% = €123 tax refund from Revenue meaning that you paid out €750 but got €450 + €123 = €573 meaning that the net cost to you after refunds and tax relief was €177.

 

[tosullivan]

Yes. You just claim MED1 relief on any otherwise unreimbursed expenses. So if a private health insurer refunds some of a charge then you subtract that amount and then claim tax relief on the remainder.
You don't need to subtract €125/€250 from single/joint or family claims from 2007 onwards (you do for years prior to this). This "excess" was abolished last year and 100% of all qualifying expenses (less any reimbursement from private health insurance etc.) qualifies for tax relief. In your case it would be €750 (gross qualifying expenses) - €450 (VHI refund) = €300 (net qualifying expenses) @ 41% = €123 tax refund from Revenue meaning that you paid out €750 but got €450 + €123 = €573 meaning that the net cost to you after refunds and tax relief was €177.

great stuff Clubman, I owe ya a pint as it looks like I'm a few quid better off each year now

 

[asdfg]

The excess for VHI - family policies is fairly large 380 to 500.
[broken link removed]

You can however claim this back in your MED 1

Med 1 form would look something like this

Medicial Expenses 450
VHI refund ........ Zero
Qualifing Expenses 450

Tax refund at marginal tax say 41%

So Zero back from VHI and 184.50 from revenue

(Does not include prescriptions which can be included in the Med 1 form)

 

[ClubMan]

The VHI (Family Plan anyway) excess for GP fees (partial) reimbursement is €1 p.a. (or per claim? - not per visit anyway). Check your policy but the "main" excess does not apply to day to day medical expense benefits such as this (and maybe others). If the original poster has 15 GP visits then they can probably claim €750 - €1 from VHI. They may also have some limits on the number of visits per person or time period. Again check the policy.

 

[huskerdu]

To clarify, asdfg, the excess for GP visits is large for some of the more basic VHI plans, but not for all plans
On my VHI policy, the excess is 1 euro, and I get 20 euro per visit, so well worth claiming at the end of the year.

 

[tosullivan]

I have Health Steps Gold so I get €30 paid towards every visit up to max of 25 visits. No excess as far as I know

 

[ClubMan]

I'm on Family Plan Plus and the excess is €1 for day to day (e.g. GP bills) claims so yours will be the same or maybe nothing. The claim form should make it clear. asdfg above is correct in general about excesses but not specifically in relation to these sort of claims where a lower or no excess applies.