Is a refund from your health insurance of Medicare Premiums considered Medical Reimbursements?

Forum|Forum|3 years ago
February 12, 2023
1 reply
12 views

BCBS Federal reimbursed me $800 from my Medicare Premium payments. Is this considered Medical Reimbursement?

TurboTax Deluxe Online

Best answer by PattiF

No, a premium subsidy which is what you received from BCBS Federal, for Medicare Premium payments is not considered Medical Reimbursement.

Medical Reimbursement is reimbursement for procedures and services performed by providers made by commercial payers such as Aetna, United Healthcare, or federal intermediaries acting on behalf of healthcare programs. Reimbursement is based on claims and documentation filed by providers using medical diagnosis and procedure codes.

If the money that you receive for Health Insurance Subsidy from BCBS is used as a direct reimbursement for insurance premiums, then it is not taxable income and you do not need to report it.

If you are itemizing your deductions on Schedule A instead of taking the standard deduction, make sure that you do not include the amount of the subsidy as medical insurance premiums. You will need to deduct the subsidy amount from your total medical insurance payments if you are itemizing.

PattiFAnswer

Level 15

No, a premium subsidy which is what you received from BCBS Federal, for Medicare Premium payments is not considered Medical Reimbursement.

If the money that you receive for Health Insurance Subsidy from BCBS is used as a direct reimbursement for insurance premiums, then it is not taxable income and you do not need to report it.

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joe1974

Level 2

For 2025 taxes I received $600 from Humana for enrolling in their Part C Advantage Plan.

ie, $50 a month was deducted from my Medicare Premium Bill for Part B. This shows up as a lowering of my Medicare premiums deducted from my SS on my SSA-1099 to only$1620. 2220-600=1620

I input this 1620 when I input the SSA-1099 in turbotax. However I also have a FEHB traditional medical policy from BCBS from the FED GOV that gave me $800 to my checking account for a medicare premium reduction allowance.

$800 is not on my SSA-1099 or anywhere else. Do I have to pay tax on the $600 and the $800??

JohnB5677

Level 15

No, you do not have to include this in your income.

In addition, it is only a factor if you itemize your expenses.

The $600 is an amount you didn't have to pay.
- It also reduced the amount you could take for medical insurance expenses.
The BCBS $800 was a reduction in price based on other conditions.
- However, it should be deducted from your Medical Insurance expenses if you itemized deductions.

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