How to Get Tax Reimbursement for Healthcare Expenses (Yes, Even Without Insurance)
Let’s face it — health care is expensive.
It’s not hard to blow through a few thousand dollars a year just trying to stay alive and functional. Between prescriptions, glasses, and doctor visits, the costs stack up fast.
But here’s the part most folks don’t realize:
You can get reimbursed for a lot of those medical expenses.
Yes — our government actually lets you do that.
The problem? Most Americans don’t know they’re eligible. So they don’t claim a dime.
That’s why I wrote this blog.
To make sure you don’t leave money on the table.
We’re going to walk through:
- ✅ What counts as a reimbursable medical expense
- ✅ How to deduct medical expenses on your taxes using Schedule A
- ✅ How to set up a Health Reimbursement Arrangement (HRA) if you’re self-employed or a business owner
By the time you’re done, you’ll know how to claim back hundreds — if not thousands — on the stuff you’re already paying for.
What Counts as a “Qualified Medical Expense”?
Whether you’re deducting or getting reimbursed, the IRS allows you to count a LOT of everyday health expenses:
Doctor visits
- Primary care, specialists, OB-GYN, surgeons
- Telehealth and virtual visits
Dental + Vision
- Exams, fillings, braces, dentures
- Glasses, contacts, LASIK, eye exams
Mental health
- Therapy and counseling
- Substance abuse treatment
- Psychiatric care
Prescription drugs + insulin
- Must be legally prescribed (inhalers, allergy meds, etc.)
Medical equipment + supplies
- Crutches, wheelchairs, glucose monitors
- CPAP machines, breast pumps, and oxygen tanks
Hospital + surgical
- ER visits, surgery, and overnight stays
- Anesthesia and OR fees
Alternative care
- Acupuncture
- Chiropractic treatment
Transportation
- Miles driven to appointments (IRS sets a rate)
- Parking fees, tolls, ambulance rides
Long-term care
- Nursing homes
- Long-term care insurance (within IRS limits)
How to Claim Medical Expenses and Maximize Your Tax Reimbursement for Healthcare
So now you know what qualifies, here’s how to actually claim those expenses on your tax return.
If you’re going the itemized deduction route, you can only deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI).
For example, if your AGI is $100,000, only expenses above $7,500 count.
To do this, you’ll need to:
- • Keep all your receipts. That includes doctor bills, pharmacy purchases, and anything else listed above.
- • Add up the total amount you spent on qualified medical and dental expenses.
- • File Schedule A (Form 1040) with your federal tax return.
If your total deductions don’t add up to more than the standard deduction… this route might not benefit you. But don’t worry — the HRA might be a better fit.
Health Reimbursement Arrangements (HRA)
A Health Reimbursement Arrangement (HRA) is an employer-funded plan that reimburses employees tax-free for health insurance premiums and out-of-pocket medical expenses.
If you’re self-employed and want to deduct 100% of your family’s medical expenses, here’s how you can do it:
- Hire your spouse as an employee in your business.
- Set up a Section 105 HRA (Health Reimbursement Arrangement).
- Reimburse your spouse for all qualifying medical costs, which include your healthcare, too.
Why it works:
The HRA covers your spouse and their family (which legally includes you). The business gets a full tax deduction for the reimbursements.
Depending on your business size, there are a few different HRA types:
- Section 105 HRA – Great for sole proprietors with no employees (besides a spouse).
- QSEHRA – Best for small businesses with fewer than 50 full-time employees.
- ICHRA – Flexible option for businesses of any size.
Important:
This isn’t a savings account. You only reimburse when receipts are submitted. And yes, your spouse must be a real employee, with actual job duties and reasonable pay.
Real Benefits of Using Tax Reimbursement for Healthcare Expenses
You’re already paying for doctor visits, prescriptions, glasses, maybe even therapy. At least, when you know how to deduct those expenses, you’re getting money back on something you’re spending money on anyway.
Benefits:
- If you support your parents and claim them as dependents, you might be able to deduct their medical expenses too.
- If you set up an HRA, you’re not stuck with the 7.5% AGI threshold — you can reimburse dollar-for-dollar, even for things like dental, vision, and travel.
- If you have employees, offering an HRA is a low-cost way to support them without setting up a full group health plan.
Bottom line?
When you understand what’s deductible or reimbursable, you stop reacting to medical bills… and start planning around them.
That’s how you save money.
That’s how you create a tax strategy.
And that’s how you protect your family and your business.
Why Tax Reimbursement for Healthcare Is Too Good to Ignore
Health care isn’t getting cheaper.
But the good news is — our tax system does reward those who know the rules.
If you want to keep more of your money and stop overpaying for medical costs, start tracking your expenses now. Talk to your tax professional. And set up the systems that help you win long-term.
📖 Want to learn more? [Click here to read another tax-saving blog post.]
📞 Need help from a pro? [Click here to connect with one of our trusted tax professionals.]
H2: Frequently Asked Questions (FAQ)
1. Do I need health insurance to get reimbursed for medical expenses?
Nope. You don’t need insurance to deduct or get reimbursed for medical expenses. As long as the expense qualifies and you follow IRS rules, you’re good.
2. What qualifies as a “medical expense” the IRS allows?
A lot! Think doctor visits, dental and vision care, therapy, prescriptions, medical equipment, even travel to and from appointments. Full list’s in the post, but it’s broader than most people think.
3. Can I deduct all my medical expenses on my tax return?
Only the amount that exceeds 7.5% of your Adjusted Gross Income (AGI). So if your AGI is $100,000, only the portion above $7,500 counts toward a deduction when itemizing.
4. What if my expenses don’t exceed 7.5% of my AGI?
Then itemizing medical expenses may not help you. But if you’re self-employed, you can still get a full reimbursement through a Health Reimbursement Arrangement (HRA).
5. What’s an HRA and how does it work?
An HRA (Health Reimbursement Arrangement) lets a business reimburse employees (including their families) tax-free for qualified medical costs. The business gets the deduction; the employee gets the benefit. Win-win.
6. Can I use HRA funds to pay for my kids’ or parents’ medical expenses?
You can reimburse for dependents’ expenses, including children and (sometimes) your parents, if you claim them as dependents on your tax return.
7. Is an HRA a savings account I contribute to?
Nope. It’s not a savings account. You only reimburse when receipts are submitted. No pre-funding necessary.
8. What if I offer an HRA to employees?
Offering an HRA is a great low-cost benefit—especially for small businesses not ready for a full group health plan. It’s tax-free for your team and deductible for your business.
9. Can I reimburse for insurance premiums through an HRA?
Yes, depending on the type of HRA you set up. Some allow reimbursements for insurance premiums, but make sure you follow the rules for your specific HRA type.
10. What if my spouse doesn’t actually work in the business?
Then they can’t be an employee. The IRS requires real work, fair pay, and proper documentation. This strategy only works if it’s legit.
