Vision Coverage for the Self Employed:
Plan TWO provides an opportunity to use 100% of your vision related expenses as a business deduction! For a small 10% administration fee, your glasses, contact lenses and even laser eye surgery can become a fully deductible expense to your business. Having your business pay for these expenses can save you more than 30% on the overall costs of these expenses!
Deducting Glasses, Frames, Lenses & Laser Eye Surgery:
One of the most common frustrations with health insurance plans is that vision care is only covered to a bare minimum – usually only $250 for every two years. For anyone who wears glasses or contact lenses, they can clearly see that this doesn’t work very well.
Using Olympia’s Plan TWO, self employed business owners can use every penny spent towards vision care as a deductible business expense. You can even have your business pay for 100% of your laser eye surgery – and receive a tax deduction for the full amount!
Without an Olympia Health and Dental Plan, laser eye surgery could end up costing close to $5,400 when you include the income tax that has already been paid! (Assuming $3,500 cost for surgery and a 35% personal tax rate).
With an Olympia Health and Dental Plan in place, the total cost would be $3,850. This is a savings of more than $1,500 on a single expense!
How did we calculate these savings?
Personal income of $5,400 (at a 35% tax rate) would leave $3,500 “after-tax” to pay for this expense. Alternatively, you can have your business pay for the expense ($3,500) using an Olympia Health & Dental Plan, plus a 10% administration fee ($350) and deduct the entire cost as a business expense.
What if I already have an insurance plan in place?
Insurance companies will typically cover a small portion of vision related expenses – although restrictions usually apply. So even if you have a health and dental insurance plan in place, the majority of these costs will not likely be covered. This uncovered portion would be an eligible expense for the Olympia Health and Dental Plan.
Example:
| Total cost for glasses: | $750 |
| Insurance coverage: | $250 |
| Uncovered amount: | $500 (eligible for the Olympia Health and Dental Plan) |
