How Long to Keep Medical Statements?

Many people accumulate various medical statements over time and often wonder how long these documents should be kept. Understanding proper retention periods for these records can help with tax obligations, insurance claims, and personal health management. Keeping organized medical statements provides a clear history of care and expenses.

Understanding Medical Statements

Medical statements encompass documents detailing healthcare services and associated costs. These include Explanation of Benefits (EOB) statements from insurance companies, which break down services, charges, insurance payments, and your remaining financial responsibility.

Other documents include medical invoices, prescription receipts, lab test results, hospital bills, physician’s notes, and diagnostic reports like X-rays. These records collectively paint a comprehensive picture of your medical journey and financial transactions.

Keeping Statements for Tax Purposes

Retaining medical statements is important for individuals who itemize deductions on their income tax returns. The Internal Revenue Service (IRS) allows taxpayers to deduct qualified unreimbursed medical expenses that exceed 7.5% of their adjusted gross income (AGI). To claim this deduction, you must itemize on Schedule A of Form 1040.

For most tax situations, the IRS suggests keeping records for three years from the date you filed your original return or two years from the date you paid the tax, whichever is later. However, if you underreport your gross income by more than 25%, the IRS can extend the audit period to six years. For instances of fraudulent returns or if no return was filed, records should be kept indefinitely. Medical invoices, EOBs, and prescription receipts are important for substantiating these deductions in case of an IRS audit.

Keeping Statements for Insurance Claims

Medical statements are important for managing insurance claims, particularly for submitting new claims, appealing denied claims, or tracking your progress toward deductibles and out-of-pocket maximums. Explanation of Benefits (EOB) statements are valuable here as they detail how much your insurance covered and what you still owe. It is advisable to keep these documents until a claim is fully processed and paid.

Insurance companies set specific time limits for submitting claims, often ranging from 30 to 180 days from the date of service, though some can be up to a year or longer. Medicare claims generally must be submitted within one year of the service date, while Medicaid deadlines vary by state, typically from 90 days to one year. Keeping EOBs and original bills wise beyond the initial submission period is for potential appeals or resolving any billing disputes that may arise. Thorough documentation, including all communications, can be important for successful dispute resolution.

Keeping Statements for Personal Health Management

Beyond tax and insurance needs, retaining medical statements supports personal health management. These records provide a comprehensive history of your health, past treatments, and diagnostic results. Having this information available can be beneficial when consulting new healthcare providers or tracking chronic conditions.

Documents like lab results, diagnostic reports, and vaccination records are valuable for long-term reference. Maintaining a detailed record of medications helps prevent adverse reactions and ensures accuracy. For ongoing health issues or significant medical events, keeping records indefinitely or for an extended period, such as 5-7 years after final treatment, offers a detailed historical account for future care.