Our discussion to this point has centered on patients with health insurance coverage. Let's assume you either have no health insurance coverage or have health insurance that does not cover infertility procedures. Listed below are financial strategies and other payment options to consider.

Currently, the Internal Revenue Service will allow you to deduct medical and dental expenses if you meet certain criteria: 1) You must itemize deductions on your tax return. If you do not have enough expenses to itemize you, cannot take a medical expense deduction. 2) Your medical expenses must exceed 7.5% of your adjusted gross income. You can deduct only the amount that is more than 7.5% of your adjusted gross income. For example, your adjusted gross income is $40,000, and 7.5% of $40,000 is $3,000. You paid medical expenses of $7,000 in a given tax year. Your deduction is $4,000 ($7,000 -$3,000). Other potential deductions include mileage and lodging if you meet specific criteria. Please consult a tax advisor for your specific situation.

A flexible spending account allows you to pay medical expenses with income on a pretax basis. Some employers offer flexible spending accounts for health and dental care. Employees can set aside a portion of their earnings that employers will deposit into an account used to pay health and dental expenses incurred in the course of the year. Internal Revenue Service regulations provide that earnings allocated to these accounts are not subject to federal income taxes, state income taxes, or FICA taxes.

Be sure to review all requirements with your employer prior to enrolling since once you have decided to participate in a plan you cannot change your decision during that year. Not all medical expenses will qualify for these accounts, and any unused funds at the end of the year will be forfeited to your employer. You may also reduce your Social Security wage base.

One payment option you may want to consider is using a credit card for medical payments. Some credit cards offer perks such as airline miles, a percentage back of total charges, or discounts on automobiles to name a few. Assuming the medical office accepts credit cards, and depending upon the type of credit card you have, you may be able to gain some advantages by using a credit card for payment. However, you may not wish to pay with a credit card unless you can pay the balance in full before you incur finance charges.

Another options to consider is tax-deductible borrowing against personal assets to cover your medical expenses. These assets may include your home, life insurance policies, or pensions. Do not undertake these options without consulting a financial advisor.

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