I think you got confused. The $10,000 limit applies to state and local taxes, not to medical expenses. What "gets" you on medical expenses is that 7.5% of your AGI will be subtracted from the total that you paid for unreimbursed medical expenses. Only what remains is actually deductible. We don't know what your AGI is, but your $12,000 of medical expenses will be reduced by some significant amount. And no, you can't deduct medical "bills." You can only deduct the amount you actually paid, that was not covered or reimbursed by insurance, minus the 7.5% of AGI.
