Out-of-pocket expenses


Out-of-pocket expenses

Out-of-pocket expenses are direct outlays of cash which may or may not be later reimbursed.

In operating a vehicle, gasoline, parking fees and tolls are considered out-of-pocket expenses for the trip. Insurance, oil changes, and interest are not, because the outlay of cash covers expenses accrued over a longer period of time.

The services rendered and other in-kind expenses are not considered out-of-pocket expenses, nor are depreciation of capital goods or depletion.

Organizations often reimburse out-of-pocket expenses incurred on their behalf, especially expenses incurred by employees on their employers' behalf. In the United States, out-of-pocket expenses for such things as charity, medical bills, and education may be deductions on federal income taxes, according to IRS regulations.

To be out of pocket is to have expended personal resources, often unexpectedly or unfairly, at the end of some enterprise.

Health financing

In the health care financing sector, this represents the share of the expenses that the insured party must pay directly to the health care provider, without a third-party (insurer, or state).

Out-of-pocket costs are high especially when it comes to prescription drugs in the United States. Before investing in a health care plan, it is very useful to examine the out-of-pocket prescription costs seeing at they may be very low or very high. High out-of-pocket costs may correlate with lowered prescription adherence. Medicare Part D is a Federal program aimed at lowering prescription drug costs for Medicare beneficiaries. However, after the first year of Medicare Part D, out-pocket drug costs were down but there was not a noticeable reduction in emergency room visits, hospitilization, or health utility score. Perhaps some diseases will be more sensitive to Medicare Part D.[1]

Some ways to improve physician knowledge of drug costs were thought to be increased physician-patient communication or higher use of information technology. Physicians with high rates of IT use did not have significantly higher knowledge or drug costs. Health IT design should be improved to make it easier for physicians to access cost information at the point of care.[2]

References

  1. ^ The Impact Of Medicare Part D On Prescription Drug Use By The Elderly. Content.healthaffairs.org. Retrieved on 2011-04-17.
  2. ^ [1][dead link]

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • out-of-pocket expenses — {n. phr.} Expenses one has to pay for oneself, not the company that sends one on a given assignment, such as tips for waiters, cab drivers, etc. * /Luckily, my out of pocket expenses didn t amount to more than $15./ …   Dictionary of American idioms

  • out-of-pocket expenses — {n. phr.} Expenses one has to pay for oneself, not the company that sends one on a given assignment, such as tips for waiters, cab drivers, etc. * /Luckily, my out of pocket expenses didn t amount to more than $15./ …   Dictionary of American idioms

  • out-of-pocket expenses — n. Costs for necessary items, usually made in cash, and reimbursable at a later time. Webster s New World Law Dictionary. Susan Ellis Wild. 2000. out of pocket expenses …   Law dictionary

  • out-of-pocket expenses — UK US noun [plural] money that you use to pay for things that you need, but which you can get back from the person or organization that is responsible for paying Thesaurus: unspecified amounts of moneyhyponym large amounts of moneysynonym …   Useful english dictionary

  • Out-Of-Pocket Expenses — An expense incurred and paid for by an individual for personal use, or relating to one s employment or business. This can also relate to ongoing costs of operating a fixed asset, such as a car or a home. Some out of pocket expenses may be… …   Investment dictionary

  • out-of-pocket\ expenses — n. phr. Expenses one has to pay for oneself, not the company that sends one on a given assignment, such as tips for waiters, cab drivers, etc. Luckily, my out of pocket expenses didn t amount to more than $15 …   Словарь американских идиом

  • out-of-pocket expenses — out of pocket ex penses n [plural] small amounts of money that you have to spend as part of your job, and get back from your employer …   Dictionary of contemporary English

  • out-of-pocket expenses — out of pocket ex penses noun plural money that you use to pay for things that you need, but which you can get back from the person or organization responsible for paying …   Usage of the words and phrases in modern English

  • out-of-pocket expenses —    Money that is paid directly for necessary items by an employee, contractor, trustee, executor or any other responsible person to cover expenses that are not specifically detailed by agreement …   Business law dictionary

  • out-of-pocket expenses — noun (plural) small amounts of money that you have to spend as part of your job, and get back from your employer …   Longman dictionary of contemporary English


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