Childhood Cancer

Your Child in the Hospital

Financial records

Even when you have good insurance and your child’s hospital stay is short, it pays to keep good records, stay alert for billing inaccuracies, and get problems resolved quickly. These days, the cost for short stays or simple procedures can quickly reach very large amounts. In addition, many expenditures that you pay out of pocket may be deductible on your federal tax return. Knowing what expenses are tax-deductible will help you keep the necessary records now and possibly save money at tax time.

For most financial records, you will need just an expandable folder. If your child’s illness involves many or lengthy hospitalizations, you will probably need a well-organized file cabinet. Here are a few suggestions for ways to manage your financial records:

• Set up a folder system or files just for medical expense records, such as hospital bills, doctor bills, all other medical bills, insurance explanations of benefits (EOBs), prescription receipts, and correspondence.

• Whenever you open an envelope containing medical billing or insurance information, file the contents immediately. Don’t put it on a pile or throw it in a drawer.

• Keep a notebook with a running log of all tax-deductible medical expenses, including the service, charge, bill paid, date paid, and check number.