How Long to Keep Health Insurance Records?

Health insurance records are documents detailing an individual’s healthcare coverage, services received, and payments made. Effectively managing these records is important for personal financial oversight. This practice helps individuals track healthcare costs and ensures accurate information is available when needed.

Types of Health Insurance Records

Explanation of Benefits (EOBs) statements detail how an insurance company processed a claim, showing the amount charged by providers, the amount covered by insurance, and the patient’s responsibility. Medical bills and invoices from healthcare providers, laboratories, or pharmacies also require retention, as these documents outline the services rendered and their associated costs.

Receipts for out-of-pocket medical expenses, such as prescription co-pays, doctor visit co-pays, and deductible payments, provide proof of direct payments. Health insurance policy documents and plan summaries describe coverage specifics, including benefits, limitations, and terms. Correspondence with insurance companies or healthcare providers, such as pre-authorization letters, claim denial letters, or appeal responses, should also be kept. Records related to Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), including contribution statements and withdrawal records, are also important.

Standard Retention Periods

There is not a single universal rule for how long to keep health insurance records, but common advice suggests retaining them for periods ranging from three to seven years. The specific duration often depends on the primary purpose for which the records are being kept.

For tax purposes, it is recommended to keep records supporting medical expense deductions or contributions and distributions from HSAs and FSAs for at least three years. This aligns with the IRS’s three-year statute of limitations for most audits. If there is a substantial underreporting of gross income, this period can extend to six years. Therefore, maintaining these records for seven years offers a broader safety margin for potential tax inquiries.

For billing disputes or audits, keep records until all bills are paid and reconciled. A common recommendation is to retain these documents for one to three years after a service has been rendered and the bill settled, or longer if an ongoing dispute remains unresolved. Records proving continuous health coverage or detailing significant medical events should be kept for as long as an individual is covered by a specific plan, and potentially longer to establish a personal medical history. Annually reviewing and purging records that have passed their recommended retention period can help manage document volume.

Why Keep Your Records

Keeping health insurance records offers several practical and financial benefits. These documents support claims for medical expense deductions when filing income taxes, potentially reducing taxable income. Having these records readily available also enables individuals to resolve billing errors effectively. Proof of services received, payments made, or correctly applied charges can help identify and dispute incorrect bills from healthcare providers or insurance companies.

Maintaining detailed records is also helpful when appealing denied claims or services. Documentation such as pre-authorization letters, medical necessity statements, and previous correspondence can provide the necessary evidence to support an appeal. These records also allow individuals to accurately track their progress toward meeting annual deductibles and out-of-pocket maximums. This ensures payments are correctly credited and that individuals are not overcharged once these limits are reached. Records also serve as proof of continuous health insurance coverage, useful for future applications or demonstrating compliance with various requirements.