What Insurance Covers LASIK and Other Payment Options
Understand LASIK insurance coverage realities and explore effective ways to finance your vision correction procedure.
LASIK, or Laser-Assisted In Situ Keratomileusis, is a surgical procedure designed to correct common vision problems. It aims to reduce or eliminate the need for glasses or contact lenses by reshaping the cornea. Understanding its cost and insurance coverage is an important initial step. Insurance providers generally view LASIK differently than other medical treatments.
Understanding LASIK Insurance Coverage
Most standard health insurance plans do not typically cover LASIK. This is primarily because the procedure is often classified as an elective refractive surgery, rather than a medically necessary treatment for an eye disease or injury. From an insurance perspective, less expensive alternatives like eyeglasses or contact lenses are available to correct vision, which impacts the coverage decision.
Full insurance coverage for LASIK is uncommon, but some vision insurance plans might offer a small discount through their network of providers, rather than providing direct coverage. Review the specifics of any vision plan or employer benefits to determine if such discounts are available. Even with potential reductions, individuals usually remain responsible for the majority of the cost.
Leveraging Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)
Even without direct insurance coverage, individuals can often use tax-advantaged accounts like Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to pay for LASIK. The Internal Revenue Service (IRS) considers LASIK a qualified medical expense, allowing funds from these accounts to be utilized.
HSAs are savings accounts that individuals can contribute to with pre-tax dollars, typically available to those enrolled in a high-deductible health plan. Funds grow tax-free and can be withdrawn tax-free for qualified medical expenses, including LASIK. Flexible Spending Accounts (FSAs), usually employer-sponsored, also allow pre-tax contributions for healthcare expenses, though these funds generally need to be used within the plan year or a short grace period. Using an HSA or FSA for LASIK can provide significant tax savings by paying for the procedure with pre-tax income.
Exploring Additional Financial Options
Beyond insurance limitations and the benefits of HSAs and FSAs, several other financial options exist for covering LASIK expenses. Many LASIK providers offer in-house payment plans or collaborate with third-party medical financing companies. These financing options can include interest-free periods, often ranging from 3 to 24 months, provided the full balance is paid within that promotional timeframe.
For longer payment durations, interest rates can apply, typically ranging from 14.9% to over 30% APR, depending on creditworthiness and terms. Monthly payments can sometimes be less than $200, making the procedure more accessible. Inquire directly with your chosen LASIK provider about available financing programs.
Significant medical expenses, including LASIK, may be eligible for a tax deduction. The IRS allows taxpayers to deduct qualified unreimbursed medical expenses exceeding 7.5% of their Adjusted Gross Income (AGI). To claim this deduction, taxpayers must itemize on Schedule A of their federal tax return. Consult a tax professional to understand how this deduction might apply and to ensure eligible expenses are accounted for.