For units using a Standard Medical Deduction do not consider any portion of a medical expense that is reimbursed to the unit when determining if the unit's medical expenses exceed $35.
For units that use actual medical expenses instead of a standard, do not allow as a medical deduction any portion of a medical expense that is reimbursed to the unit. Allow the nonreimbursable portion of a medical expense:
- when the reimbursement amount is received (only allow the nonreimbursable portion); or
- when the amount of the nonreimbursable portion is verified.
For the nonreimbursable portion of a onetime only medical expense, the unit may choose to:
- have a onetime only deduction, or
- have the expense averaged over the remaining months of the approval period.
A reimbursement for past or future medical expenses that does not represent a gain or benefit to the unit, is exempt income and the expense cannot be used as a deduction. A reimbursement would be a gain or benefit to the unit if it is greater than the actual amount paid by the unit.