are copays part of deductible
Copayment/coinsurance in drug plans. The amount you pay for each of your prescriptions after you have paid the deductible (if your plan has one) is either a copayment or coinsurance. Some Medicare Prescription Drug Plans have different levels or  tiers  of copayments or coinsurance, with different costs for different types of drugs. 1  With a copayment, you pay a set amount (like, $10) for all drugs on a tier. 2  Coinsurance means you pay a percentage of the cost (like, 25%) of the drug. Coinsurance is the percentage of covered charges for which you are liable. The deductible is the specific dollar amount for a covered treatment, service, or supply that a member is responsible to pay before benefits are payable under the policy. In contrast, the deductible is the amount of money that a patient must pay before major services are covered, usually things like hospitalizations or surgery. Copays are part of a patient's payment toward one particular bill and something he usually needs to bring with him at the time of service. Deducting Medical Expenses. The IRS only allows you to write off a medical expense such as a doctor’s copay if it is part of unreimbursed health care costs in excess of 7.5 percent of your adjusted gross income. Suppose your AGI is $120,000 and you have $13,500 in unreimbursed medical costs. No Reimbursement. If you are later reimbursed for your copay, you can't claim that cost as a tax deduction. For example, if you have a supplemental insurance plan that pays you back for your copays, even though you must pay out-of-pocket when you're at the doctor's office, you can't include that in your deduction. Copay-based health plans prior to reform. Prior to healthcare reform, copays at the doctor or pharmacist did not count toward your deductible or out-of-pocket maximum. This wasn’t a huge deal for someone with low healthcare expense because a $35 copay here or a $10 copay there didn’t represent a lot of healthcare dollars. Let’s take an example . Jake has a copay-based health plan with 80 percent coinsurance, a $2,000 deductible, and a $3,000 out-of-pocket maximum. After two doctor and three specialist visits, Jake is diagnosed with diabetes and told he needs to take two medications each month. Copays for acupuncture, visits to a chiropractor or your dentist may be counted, along with medical tests your doctor orders that you must pay for. You can also deduct the cost of prescriptions or equipment such as eyeglasses, bandages and crutches. Hospital costs, including physician’s fees, are deductible. You cannot write off a doctor’s copay if you are reimbursed for it by your health coverage provider or by an employer-provided plan. Use Schedule A to report your copays, as well as any other itemized deductions you're eligible to claim. On line 1, enter your total qualified medical expenses, including copays. On line 2, copy your adjusted gross income from line 38 of Form 1040. An Explanation of Benefits shows the copay and deductible amounts that are the patient's responsibility. Prescription drug coverage often includes a copay. Copays are part of a patient's payment toward one particular bill. A patient's copay varies depending on the type of services rendered. A copay is the specific amount that the patient tenders for medical services at the time they are provided.
No, if you are later reimbursed for your copay, you can't claim that cost as a tax deduction.