Question

I have a somewhat unique situation and need suggestions for how to budget/account for this. My son receives 4 therapy sessions per week (physical, speech, and occupational). Our copay is $60, $35, and $35. In a couple of weeks it will be $60, $15, $15. We are reimbursed these payments through a school scholarship program from our state, but it takes about 8 weeks to get the reimbursement. I’m focused on paying off debt right now and we have over $10k in savings. Should I account for these payments as a “bill” in the budget and then add the reimbursement as “income” when it comes in 2 months or do you think it would be easier to just float the money from savings as “income” and then account for the payment as a “bill”, then transfer the reimbursement back to savings when it arrives? It’s over $600/mo right now out of pocket.  

Answer 1

As long as you have the cash to pay and aren’t charging it I would count it as a bill each week and then income when you get reimbursed later.  

Answer 2

If you can swing the $600. without going into savings, do so. However, if you can’t, then move the money from savings - maybe open a separate checking account just to pay from and transfer to . so you don’t forget if the school did or did not reimburse.  

Answer 3

I would track it as a bill and track the income. This will also help should a reimbursement ever get skipped, it will be easy to find if you received it or not.  

Answer 4

Maybe you could create an account just for medical expenses? Then when the reimbursement comes in you can put it in that account and not have to pull additional from your checks. For example 4 weeks currently costs $520 and eventually will cost $360. If you set aside $500 to start the account you can budget $400/month in the future and the reimbursements will start to accumulate to pay for any additional amounts. Then it’s a set amount in your budget but it’s always covered.  

Comments

These numbers were based on 4 weeks not a full month (since it varies).  

Answer 5

I would create a separate account so you can track it much easier. If not, it might get missed.  

Answer 6

I would move a certain amount to a separate account just for this purpose

Answer 7

We have something similar with daycare. My husband puts $400 a month tax free aside but we have to request reimbursement that is refunded at best every few week but daycare is owed weekly. I personally work the normal weekly daycare amount into our budget so we can always afford it, then when the reimbursement comes through I treat it like extra bonus income and distribute to either sinking funds or debt or both.  

Answer 8

Can you afford to add it to your budget? If so, I would do that, and then use the reimbursement to pay debt when you get it. I have a similar set up for daycare expenses. Money is withheld from each pay, then I can request reimbursement at any time. But we have to pay daycare up front. I just budget based on our take home pay which doesn’t include the daycare withholding. Then when I request reimbursement (I do it about 3-4 times a year) I pay that on debt.  

Answer 9

Another option that might work if this is going to be ongoing would be to set up an FSA if your employer(s) offer it. You can save the money tax free then pay your copays with a debit card linked just to that FSA money.  

Comments

@greenback You can have a Flexible Spending Account with any insurance plan. But you have to have a high deductible plan for a Health Savings Account.  

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@custer thanks, I thought that was the case but didn’t want to say without being sure. We do not have a high deductible plan and we have an FSA. It can be used for copays and such, but also things like dental work, eyeglasses, etc.  

Answer 10

Is your son disabled? Mine receives PT/OT/SP (we have BCBS, and Medicaid because of his disability diagnosis) no copay

Comments

@greenback wow! I’m so sorry to hear that! We have income waivers here  I wish you the best of luck! It’s a double full time job when your kiddo has a disability

Answer 11

I would just float them as bills then add the reimbursement as income later.  

Answer 12

Do you not have a annual out of pocket you’d reach quickly making remainder of year copays $0?  

Answer 13

I also have a seperate account just for my son. It is for his co-pays, medication, eye drops, chewerly, therapies and diapers.  

Answer 14

If you are in Massachusetts, MassHealth will cover all of his medical expenses if you can prove that your Private health insurance is not affordable. And they cover it all up front, no reimbursements or wait time. All you have to do is apply for MassHealth online through connectorcare. It takes you step by step. If you are not in Mass, let me know which state and I will see what their state provided insurance offers.