How Long to Keep Medical Insurance Records?

Just the Essentials...

If your medical treatment has been successfully completed and the bill has been paid, it’s usually okay to get rid of your health insurance records.
If you prefer to keep track of health-related issues, especially if you suffer from chronic illnesses or ailments, you can hold on to medical records as long as you like.
The IRS can ask for records dating back seven years, so it’s best to keep any health insurance records that you claimed on federal tax returns for at least that period of time.
If you’re concerned about having too much documentation around your home or office, switching to electronic medical records is a great solution.

What’s the Point of Keeping Old Medical and Health Insurance Records?

Old paperwork can cause plenty of clutter in your home or office space. It’s tempting to want to dispose of most of it, but some of that paperwork may be too important to get rid of right away. A good example of paperwork you might want to hold on to for a little while would be medical and health insurance records.

In your life, you’ll likely go through some kind of prolonged medical treatment or procedure at some point. A single visit to a doctor or urgent care center is not always enough to deliver the treatment that you need. If this sounds like your current situation, you’ll want to hang on to as many medical and health insurance records and receipts until your care provider informs you that medical bills are paid in full. This means that your health insurance provider will have paid out your claim.

If you dispose of your medical and health insurance records and receipts before your claim is paid, you could find yourself in a tough place. Human and computer errors are always possible. Because of the possibility of such errors, it’s always best to hang on to any kind of health records for a little while. Today, we’ll take a look at why it’s so important to hang onto medical and health insurance records for a little while.

If you’re in need of health insurance, we can help. Enter your zip code into our free finder tool above to find and compare quality health insurance plans in your area.

Keeping Tabs on Your Health

First, it’s important to know what types of medical records to hang onto. The most important records to keep around will be the ones associated with any recent medical expenses. You’ll want to hang on to these records just in case any issues arise with payment or claims so that you can resolve the matter as quickly as possible.

Keeping recent records is especially helpful when your health insurance company refuses to pay their share of your medical expenses. It’s not an automatic defeat, but you will need to appeal the company’s decision. Cases have a better shot of being ruled in your favor if you have all necessary medical and health insurance records.

Also, keeping records for any period of time can be vital to help you get any treatments you’ll need in the future. If you have medical and health insurance records available, it helps your healthcare provider and insurance company see what’s going on. In turn, this helps them advise you on any future moves to make for treatment.

Being able to keep tabs on your health and any medical bill or insurance payments is important. Hanging on to your medical and health insurance records for a little while can help you do just that.

The IRS May Request Health Insurance Records in Some Instances

No one seeks to take on medical expenses just to get a deduction at tax time. However, this is a benefit that you could be taking advantage of if you happen to have records and receipts on hand. If you want to take advantage of medical expenses as tax deductions, you’ll need to hang on to your medical and health insurance records for at least seven years. We’ll explain more on that last part in a second.

Proper documentation helps support any medical-related tax deductions that you plan to claim on your taxes. This can save you the trouble of having to track your records down years after the fact. Here’s what you need to know:

Expense records related to healthcare costs, especially major expenses, can help you reduce your overall tax bill.
The IRS has up to seven years to request complete documentation related to health insurance records. That’s why it’s important to hang onto them for at least that long.
Recreating your expenses after so long can be extremely difficult. Store your records in a secure location where you can easily access them, or go electronic. Both methods can be a big help in the event you’ll need to account for anything specific.

Health insurance and medical expenses can take up a great deal of your financial resources. Using them to help reduce your tax bill can help you keep or recoup as much of that money as possible.

Electronic Storage of Medical and Health Insurance Records Is a Great Option

Most people are very concerned about the privacy of their medical information. If you aren’t, you should be – your documentation falling into the wrong hands can leave you vulnerable to identity theft. If you’re hesitant to keep paper companies of your medical and health insurance records around the house for that exact reason, it’s time to consider storing them electronically.

Digital security is far more advanced today than it has ever been. Most healthcare providers give you access to digital records right away, which allows you to download them and keep them in dedicated folders. If your provider still prefers giving you paper records only, you can still digitize them by scanning them and shredding the paper copies.

The IRS will readily accept electronic copies of your records for tax purposes. We must note, though, that some insurers still do not accept electronic copies. If you’re unsure of whether or not electronic records will work for your health insurance provider, it’s always best to ask. This will save you plenty of unnecessary headaches in the long run.

In Conclusion…

It’s important to hang on to medical and health insurance records for many different reasons. You’ll want to hang on to them for both health-related and financial reasons. While you won’t want endless mountains of documentation lying around, it’ll be there when you need it.

If your main concern with hanging on to your medical and health insurance records is privacy-related, electronic documentation can take a load of stress off of your shoulders. Of course, if you prefer paper copies, storing them in a secure place that only you know of is your best course of action.

Do you need health insurance coverage? Enter your zip code and begin comparing plans in your area today!