Since we're currently stuck with an income tax, this is the way I would like to see medical expenses handled:
1. Allow a health expenses saving account where the interest accrued wouldn't be taxed as long as the funds were used for allowed expenses.
2. Allowed expenses would include OTC meds, disposable materials, health services, and long-term health related durable goods. That would include such things asblood pressure monitor, latex gloves, eye drops, health club membership, exercise equipment, hearing aids, dental care, vitamins, bandages, shoe orthontics, glasses, dietician services, smoking cessation programs, etc. If it's health related but not covered by insurance, then it would be paid for out of this account.
3. Itemized receipts but not prescriptions would be required for all purchases. Prescriptions require doctor visits, which cost time and money, and aren't necessary for most of the items. Prescriptions would be allowed but not required.
4. Co-pays would be paid from this account and deducted from the gross income line.
5. Mileage, lodging, and parking expenses not covered by insurance for doctor/hospital visits and stays, would be paid from this account, and be tax deductible, no minimum required.
6. All medical expenses, including insurance premiums, without a minimum, would be tax deductible from the gross income amount.
