Hearing Aid Provider Financing Plans
If you qualify for financing, you can pay off your hearing aid in chunks, over 3-60 months. Many hearing aids providers offer this service, at interest rates ranging from 10-30% APR.
Occasionally, providers will offer interest-free financing options. This means you get to spread the cost of the hearing aid, without having to pay any additional amount on the initial price of the hearing aid.
Even if your credit score is poor, selected providers will still provide financing, so long as you have 30% of your hearing aid value to begin with. There may be hefty fees to pay if you default on your payment plan, so be certain you can meet the schedule before choosing this as an option.
Allowable Deductions For Hearing Loss
In the case of hearing loss, allowable deductions include any payments you made for your diagnosis and treatment, which include what you paid for your hearing aids. While that may not add up to much by itself, it may be a significant factor when combined with your familys other medical and dental expenses.
Additionally, you also may be able to deduct the costs for transportation associated with your hearing loss, including actual fares for taxi, bus, train and ambulance rides. If you dont use public transportation, the actual out-of-pocket expenses you incurred for your personal vehicle are deductible, such as gas, oil and mileage, tolls and parking but only as they directly relate to your qualifying medical expenses.
Obviously, this process requires that youve kept good records and receipts for things that probably didnt seem important at the timelike bus fare and trips to the gas station. If you didnt keep all of the receipts necessary to take full advantage of these medical deductions this year but think itemizing may be beneficial, youll want to make a plan for tracking these expenses next year.
How To Pay For Your Hearing Aids
While direct-to-consumer hearing aids are helping reduce the cost of hearing aids, there are a number of payment options that may be available to you to help make purchasing hearing aids easier and risk free.
FSA/HSA Flexible Spending Accounts and Health Savings Accounts allow you to set aside a portion of your paycheck pre-tax to be used towards health expenses, thus saving you the money that would otherwise go to taxes. Bose SoundControl Hearing Aids are FSA- and HSA-eligible across all plans.
Medicare Advantage Medicare Advantage plans are offered by private insurance companies and cover the same health care services as Original Medicare. Some Medicare C plans cover hearing consultations and hearing aids.
Insurance plans Historically, private insurance companies have not covered hearing products. While this is still largely the case, as the insurance market has become more competitive, some companies have started offering hearing benefits to their members. Check with your insurance company to see if your plan covers hearing aids.
Veteran benefits Veterans whose hearing loss is related to their military service or a condition treated at a military hospital are eligible to have the cost of their hearing aids covered via the U.S. Department of Veteran Affairs . Additionally, if their hearing loss is severe enough to interfere with everyday activities, they can obtain hearing aids via the VA.
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What Items Are Fsa
The IRS defines the term medical expenses as follows:
Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes.
The following healthcare expenses are among those eligible for FSA spending:
- Copayments
- Prescription medications
- Over-the-counter medication with a doctors note
For example, you can get an FSA reimbursement when you purchase OTC medicine for allergies, cold, and flu, as long as its accompanied by a prescription. Other eligible over-the-counter purchases include bandages, first aid kits, and thermometers.
These FSA expenses make sense and are fairly obvious, but others are a little more unorthodox. Below, youll find 16 surprising FSA-eligible expenses that you can spend the money in your FSA onincluding hearing aids.
Health Spending Medical Accounts
If you dont have enough deductions to make itemizing worth your while, it may be beneficial to use pre-tax dollars to help pay for your hearing health costs. Check with your employer to see if they offer health spending medical accounts , also known as Flex Spending Accounts , Medical Savings Accounts and Health Reimbursement Arrangements.
HSAs are pre-tax benefit accounts you put money into to pay for out-of-pocket health care costs such as co-payments, deductibles, some drugs and other health care costs. Contributions for eligible participants range from $3,550 for an individual to $7,100 for families and vary depending upon the type of coverage you have, the date you become eligible and the date you cease being eligible. Contributions for FSAs are $2,700 each year and must be spent by the end of the plan year or forfeited.
Hearing aids are an allowable medical expense for health spending accounts. Although your contribution may not cover the entire cost of your hearing aid purchase, it will help. If youve already purchased hearing aids, you can use health savings account funds to cover the costs of any repairs and maintenance as well as batteries youve purchased to operate them.
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Can You Pay For Hearing Aid Batteries With An Hsa
Are you wondering if you can pay for hearing aid batteries with a health savings account , flexible spending account , or health reimbursement arrangement ? You may also be wondering if this item is eligible or ineligible for reimbursement with your HSA, FSA, or HRA.
Yes, you can pay for hearing aid batteries with an HSA, FSA, or HRA.
Examples Of Qualified Medical Expenses
- Acupuncture
- Braille books/magazines
- Car adaptations
- Chiropractors
- Contact lenses
- Crutches
- Dental treatment
- Diagnostic devices
- Doctors fees
- Eye surgery
- Feminine products*
- Fertility enhancement
- Guide dog
- Hearing aids and hearing aid batteries
- Hospital services
- Insulin
- X-rays
*Under current Covid-19 regulations
Insurance premiums are generally not considered qualified medical expenses. However, the following types of insurance premiums generally qualify:
- Continuation coverage under federal law
- Qualified long-term care insurance premiums
- Any health plan maintained while an individual is receiving unemployment compensation under federal or state law
- For account holders age 65 and over , premiums for any health insurance
Prior to age 65, funds used to pay for non-eligible medical expenses are subject to normal income tax and a 20% penalty. After age 65, funds may be withdrawn for non-eligible expenses with no penalty . Medicare supplemental policy premiums are not included.
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Grace Periods And Carryovers
With a carryover, up to $500 of unused FSA funds from the previous plan year can be carried over and used to pay for qualified medical expenses in the following plan year.
With a grace period, any unused FSA funds from the previous plan year can be used to pay for qualified medical expenses incurred during a period up to two and a half months after the end of that year. After the grace period, any remaining FSA funds from the previous year expire completely.*
Moreover, if your employer FSA plan includes a grace period, you may be able to pay for hearing aids by drawing from two years of FSA contributions.
Supposed that, assuming your FSA plan has a two-month grace period:
- Your FSA plan year ends in December after you signed up to contribute $2,400 to your FSA for the year.
- However, you have only withdrawn $400 in health expenses and have $2,000 left in your FSA at the end of the year.
- In the following year, you again designate a total FSA contribution of $2,400 at $200 a month.
- In mid-January, you make an appointment with your audiologist to obtain a new audiogram and order two new hearing aids for $4,400.
- Even though you may have only contributed $200 to the FSA for the year so far, you can immediately withdraw up to the full $2,400 annual contribution amount.
- Moreover, since you are still within the grace period, you can also draw on the $2,000 balance remaining in your FSA from last year.
Are Hearing Aids Covered By Insurance
by Dr. Jan Liles | Jan 23, 2020 | Patient Resources
Hearing aids can greatly enhance your quality of living and independence. Unfortunately, many individuals who have a hearing loss shy away from treatment for a variety of reasons. Among those, I often encounter have to do with the cost of hearing aids and insurance coverage. Are hearing aids covered by insurance? I can offer no simple answer to that question, but I can provide you with some help for navigating through the complicated world of insurance coverage for hearing aids.
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Using The Standard Medical Expense Deduction
Fortunately, the Federal Governmentthrough the Internal Revenue Service does recognize hearing aids as a deductible medical expense. Specifically, according to IRS Publication 502 , the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it all count toward your medical expense deduction. In other words, the IRS has stated explicitly that qualified, deductible medical expenses include not just the cost of hearing aids but also the cost of hearing aid batteries and hearing aid repairs.
Unfortunately, there is a catch. Specifically, on your federal income tax return for 2019, you can only deduct the portion of your medical and dental expenses that exceed 10% of your adjusted gross income . In other words, if your total medical and dental expenses for the tax year fall below your 10% deduction threshold, none of your health expenses are deductible, no matter how much you spent on hearing aids.
Granted, there are some basic strategies to increase your odds of exceeding the threshold and being able to claim a deduction for health expenses. You can reduce your gross income, perhaps by contributing to a retirement account conversely, you can increase your qualified health expenses, perhaps by scheduling needed surgery or other medical procedures within the same calendar year that you buy hearing aids.
Fsas Hsas And Hearing Aids: Take Advantage Of Your Account
Its That Time of Year Again!
December 31st is quickly approaching, and for those of us with Flexible Spending Accounts , this means time to scramble. For many with FSAs, December 31 means saying farewell to a years worth of accumulated health funds.
This holiday season, put those about-to-expire FSA funds towards a gift for yourself. Hearing aids are often not covered by insurance, so it is helpful FSAs and Health Savings Accounts can often assist in mitigating the financial blow. This December, let Northeast Houston Hearing Services assist you in improving your hearing and spending those FSA funds like a pro.
FSA and HSA-What do they mean?
What do these acronyms really mean? FSA, HSA you may be familiar with these terms, especially if youre one to frequent the doctors office, but do you really know what they mean? Sure, you may know that FSA stands for Flexible Spending Account, and HSA for Health Savings Account, but are you fully aware of the intricacies of how they function? Whether you are or are not, were glad to be here to provide some essential info.
How do they work?
A major difference between these two plans is an issue of time: the FSA is time-dependent, and one must spend within their plan until it expires this usually happens on December 31 while HSA funds typically roll over to the next year. However, both can be used to cover the cost of hearing aids!
So, what does this mean for you?
Changing the Game with Northeast Houston Hearing Services:
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Does Medicare Cover Hearing Aids
Does Medicare cover hearing aids? According www.medicare.gov, a federal government website managed by the Centers of Medicare and Medicaid Service, Medicare does not cover routine hearing examinations, hearing aids, or exams for fitting hearing aids. There is some coverage with Medicare Part B if your doctor orders diagnostic hearing and balance exams to determine if you need medical treatment. Although the lack of or minimal coverage is unfortunate there are other options to explore.
To determine if there is financial assistance available in your state from non-profit organizations you can do a search on the internet. One option is to do a Google search for: hearing aid payment assistance in < enter your state> . From this search you may find many charitable organizations that may be able to assist you financially with your hearing aid purchase. You can find a very useful summary of some of these organizations here. A lot of the charitable organizations are providing assistance for lower income families, but not all of them. Do your research.
Other Options to Help with the Cost of Hearing Aids
Although Medicare does not provide coverage, there are other options to consider in covering the cost of hearing aids.
Health Savings Account
MedicaidMany state Medicaid programs may provide partial or complete coverage of hearing devices. To find information specific to your state you can visit your state government website.
Hearing Insurance Can Supplement Or Cover The Cost Of Hearing Aids
Unfortunately, some hearing aid benefits run dry at the end of the year if they arent used, so be sure to contact your insurer for more information about your specific policy.
If Community Hearing Center is a preferred provider with your insurance company, we will directly bill your insurance for payment. Your employer may also offer an FSA or HSA that pulls money from your paycheck pre-tax and sets it aside for future medical expenses.
In this case, the costs would still come out of your pocket, but it would be untaxed. If youve already used your FSA funds for the year, please consider what your hearing needs will be next year when you sit down with your companys benefits coordinator and decide how much of your paycheck youd like to reserve tax-free.
Frequently Asked Questions
Will Medicare pay for my hearing care needs?Will Medicaid pay for my hearing care needs?
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Hearing Aids And Medicare Alternatives
Although Medicare does not cover hearing aid technology, you will be glad to know that there are many alternative ways to access financial assistance, and help take care of your hearing. The best choice will depend on who you are, where you live, and what your health situation is. Below you will find some of the available options:
Hearing Aid Insurance Coverage
There are, however, three states with required hearing aid insurance coverage for adults New Hampshire, Rhode Island, and Arkansas. While better than nothing, these states still don’t offer adequate hearing aid insurance often with so many restrictions that purchasers are unable to receive the hearing aids they want and the functions they need. The minimum requirements are only $1,500 per hearing aid once every five years in New Hampshire, only $1,400 per hearing aid every three years in Arkansas, and sadly only $700 per hearing aid every three years in Rhode Island. This coverage doesn’t go a long way when you consider that the average cost for a hearing aid is $2500 per ear. The coverage also doesn’t include direct-to-consumer hearing aids like Lively and completely excludes the additional costs that come with getting a hearing aid, including doctor’s visits and audiologist consultations.
This situation was stagnant for many years, as only six companies dominated the hearing aid market. Those who needed hearing aids didn’t have many options either pay out-of-pocket or live with limited hearing.
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Services That May Be Eligible With A Letter Of Medical Necessity Completed
This list is not all-inclusive:
- Weight-loss programonly if it is a treatment for a specific disease diagnosed by a physician
- Compression hosiery/socks, antiembolism socks or hose
- Massage treatment for specific ailment or diagnosis
- CPR classes for adult or child
- Improvements or special equipment added to a home or other capital expenditures for a physically handicapped person
- Weight-loss programonly if it is a treatment for a specific disease diagnosed by a physician
- Compression hosiery/socks, antiembolism socks or hose
- Massage treatment for specific ailment or diagnosis
- CPR classes for adult or child
- Improvements or special equipment added to a home or other capital expenditures for a physically handicapped person
Which Expenses Are Not Eligible
The following expenses are not eligible for reimbursement under a Dependent Care FSA:
- Day care for a child age 13 or older
- Overnight summer camp
- Kindergarten or school tuition for a child age five and older
- Expenses for any care provided to a qualifying dependent by another dependent or child under age 19
- Housekeeping expenses not related to dependent day care
- The expenses for which you claim a dependent day care tax credit on your federal income tax return
- The registration fees paid for day care, summer camp, kindergarten, preschool, etc. The only exception is day camp or registration fees applied toward the first payable bill. These are eligible once the initial bill has been paid and the service has been provided.
- The cost of meals while on field trips and outings or those meals included as part of the cost of such trips
- Health care expenses for a dependent. These should be considered for reimbursement through a Health Care Flexible Spending Account.
- Meals, snacks, food these are not eligible if the cost is paid separately or itemized or expensed separately from tuition.
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