ira money used for medical bills

Do I still get penalized for taking money out of an IRA if used for medical bills?
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    There is an exception to the penalty for distributions used to pay unreimbursed medical expenses (the amount of expenses less 7.5% of AGI).

    Refer to page 3 of the instructions to form 5329 for a list of all the exceptions.

    http://www.irs.gov/pub/irs-pdf/i5329.pdf

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