Hello,
From what I am understanding from your question, this is just a discount so you would only report the medical expenses paid that are out of pocket if it totals to over 7.5% of your adjusted gross income. Usually people do not reach this threshold so they take the standard deduction.
https://www.taxes.ca.gov/sales_and_use_tax/whatstaxable.html#:~:text=Some%20items%20are%20exempt%20f...
This link says that prescription medications are not taxable in CA. You can click on this link or copy and paste it into a browser.
I hope you found this helpful.
Katie S.
Katherine S 63
