Med 1 vs VHI

M

moneyminder

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If I understand this process correctly Revenue will pay me back 41% of my medical expenses as I pay tax at the top rate. Single income married couple.

VHI on Family plan will give me back €20 per GP visit, €60 for consultant visit and €250 for maternity costs less a €1 excess.

Am I better off then to claim under revenue for my family for:
€2k consultant maternity costs, €500 for other consultants, €80 per month prescription fees

and to claim under VHI for the GP fees of €40 a go?

It seems to me I will get less back under VHI for the consultants and maternity and I'd be better off doing those expenses under Revenue but am I missing something?

Thanks
 
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You should claim both as far as I can see: you can claim €20 per GP visit from VHI and then claim 41% tax back from Revenue on the balance not reimbursed by VHI of €40. Say your GP visit will cost you €60 gross then it will be €60 - €20 (VHI refund) - €16.40 (tax refund of €40 @ 41%) = €23.60 net. If you claimed tax relief only on the full €60 and did not bother claiming from VHI then the net cost would be €60 x 59% = €35.40. If you claimed VHI only but not tax relief on the balance then it would cost you €40.
 
Corrected figures for GP visits:

Your GP charges €40. You claim €20 back from VHI and then claim 41% tax relief on the €20 balance not refunded by VHI. The gross cost is €40 but the net cost after VHI and tax refunds is €40 - €20 (VHI refund) - €8.20 (tax relief of €20 @ 41%) = €11.80.

(Note that there is an excess of €1 on VHI GP fee claims).
 
ClubMan said:
Corrected figures for GP visits:

Your GP charges €40. You claim €20 back from VHI and then claim 41% tax relief on the €20 balance not refunded by VHI. The gross cost is €40 but the net cost after VHI and tax refunds is €40 - €20 (VHI refund) - €8.20 (tax relief of €20 @ 41%) = €11.80.

(Note that there is an excess of €1 on VHI GP fee claims).
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Only a one off €1 excess on the total amount claimed from VHI - not an excess per visit.
 
ClubMan said:
Corrected figures for GP visits:

Your GP charges €40. You claim €20 back from VHI and then claim 41% tax relief on the €20 balance not refunded by VHI. The gross cost is €40 but the net cost after VHI and tax refunds is €40 - €20 (VHI refund) - €8.20 (tax relief of €20 @ 41%) = €11.80.
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Not to question you Clubman but can you do that? I always assumed you could claim from one or another?
 
Cashstrapped said:
Not to question you Clubman but can you do that? I always assumed you could claim from one or another?
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Yes - the [broken link removed] explicitly allows you to deduct from your gross qualifying expenses any amounts refunded elsewhere (e.g. from the HSE/drug payment scheme, SW (?), private health insurance etc.) to give the net amount that qualifies for relief (previously - 2006 and earlier - also subject to the €125/€250 "excesses" on individual/joint claims). Also...
Deductions for sums received or receivable in respect of Health Expenses
You cannot claim relief in respect of sums already received or due to be received from:
  • Any public or local authority e.g. Health Service Executive
  • Any Policy of Insurance
  • Any other source e.g. Compensation
You must give details of such amounts and deduct them from the amount claimed on the claim form.
Click to expand...
 
ClubMan said:
Yes - the [broken link removed] explicitly allows you to deduct from your gross qualifying expenses any amounts refunded elsewhere (e.g. from the HSE/drug payment scheme, SW (?), private health insurance etc.) to give the net amount that qualifies for relief (previously - 2006 and earlier - also subject to the €125/€250 "excesses" on individual/joint claims). Also...
Click to expand...

You have just made my new year for me, have alot of medical expenses and thought I could only claim from one or the other, very useful piece of information, thanks.
 
THe procedure is that you send the receipts for the GP visits to the VHI, who reimburse you, and send a statement which lists the details of the claim, but do not send you back the original receipts.

You use this claim statement to backup your Med 1 claim. VHI have an agreement with the Rev Comm. on this.

Also, to clarify, there is an excess of 1E for GP visits with the Family plans for VHI, but an annual excess of 250 for consultant fees.
 
huskerdu said:
You use this claim statement to backup your Med 1 claim. VHI have an agreement with the Rev Comm. on this.
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Just to clarify - you just hold onto receipts or the VHI (or other health insurer?) refund statement for 6 years in case Revenue ever come looking for it. You don't have to send it in as a matter of course with your MED1/2 claim.
 
Yes, Clubman, according the VHI, this is what they have agreed with Revenue. It is on the claim form.
 
I know but have the other health insurers agreed something similar or do they return original receipts?
 
I will copy my reciepts before I send to VHI, just to be sure.
No where on my claim form does it say anything about a €250 excess for consultants though?? I got mine here http://www.vhi.ie/pdf/claims/daytodaymedexpenses.pdf

FYI you can do your MED 1 claim online at www.ros.ie and you don't have to send in anything I dont think?
Though you need your own p60/spouse's p60 (if jointly assessed) to know what income and tax paid figures to enter
 
moneyminder said:
FYI you can do your MED 1 claim online at www.ros.ie and you don't have to send in anything I dont think?
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Or on [broken link removed]. And you don't have to send anything in if you do it this way. But you must hold onto onto receipts or equivalent for 6 years in case Revenue ever ask.
Though you need your own p60/spouse's p60 (if jointly assessed) to know what income and tax paid figures to enter
Click to expand...
Your final payslip's cumulative taxable income and cumulative income tax figures should be the same as what will appear on your P60.
 
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