Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 11, 2023 4:06:40 PM

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

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

0 1 345
1 Best answer
Expert Alumni
Feb 11, 2023 4:19:45 PM

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.

1 Replies
Expert Alumni
Feb 11, 2023 4:19:45 PM

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.