Yes, the amount you pay out-of-pocket for medical insurance is a qualified medical expense, and can be included in the amount you report.
Using money that you received from a pension is considered to be using out-of-pocket funds.
Please note that, in order to claim a deduction for medical expenses, you need to itemize deductions on your return. Additionally, the medical expense deduction is limited to expenses that exceed 10% of your adjusted gross income (AGI). The threshold is reduced to 7.5% of AGI if you were born before January 2, 1952.
