After you file

I'm not clear this is taxable income.  If you were in the US, the insurer would pay the provider directly and that is not taxable even though it is to your financial benefit.  Here, if you submitted receipts and the insurer only reimbursed you for your costs, I don't think that is taxable.  Alternatively, if it is taxable (but you use the medical expenses as an offsetting deduction--which likely won't actually result in a deduction), then it is still not self-employment.

 

Go to the 1099-MISC interview and answer all the testing questions as No (not your regular work, no profit motive, not similar to other work you do, no expectation of similar income in past or future years.). That should make the income taxable miscellaneous income on line 8z of schedule 1, but should not result in questions about a business, EIN, or self-employment tax.

 

Then, if you want to take the position that it is non-taxable, you would go back to the miscellaneous income section and enter another item of "other income" with a minus sign to offset the income.  (If the income was $4000, you would enter an extra item with minus $4000 or -$4000 so it would cancel out the 1099.). Use a reason like "non-taxable medical reimbursement."