Is COBRA a medical expense?

Asked by: Prof. Nathen Hudson MD  |  Last update: October 10, 2025
Score: 5/5 (20 votes)

According to the Federal tax laws, your unreimbursed COBRA payments are, in fact, deductible as medical expenses on your 1040 tax return in the same way that you can deduct unreimbursed payments for legal medical services provided by physicians, surgeons, dentists, and other medical practitioners, as well as any ...

Do COBRA payments count as medical expenses?

Yes they are tax deductible as a medical expense.

Is COBRA life insurance or medical insurance?

What is Cal-COBRA? Cal-COBRA is a California Law that lets you keep your group health plan when your job ends or your hours are cut.

Is paying for insurance considered a medical expense?

Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care.

Is COBRA a qualified medical expense for HSA?

Your health savings account (HSA) can be used to pay for many medical expenses approved by the Internal Revenue Service. This includes qualified health insurance premiums. Premiums paid for COBRA, Medicare, and long-term-care insurance may be HSA eligible.

What Is COBRA for Health Insurance

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What are qualified medical expenses?

Common IRS-Qualified Medical Expenses

Acupuncture. Ambulance. Artificial limbs. Artificial teeth* Birth control treatment.

Can you make HSA contributions on COBRA?

You are still eligible to participate and contribute to an HSA while on COBRA as long as: You're enrolled in an HSA-eligible health plan (or high-deductible health plan). You don't have any disqualifying coverage (such as an FSA).

What Cannot be claimed as a medical expense?

Examples of Medical and Dental Payments you CANNOT deduct:

Health club dues, gym membership fees, or spa dues. Electrolysis or hair removal. The cost of diet food or nutritional supplements (vitamins, herbal supplements, "natural medicines") Teeth whitening.

Can I deduct cobra premiums if self-employed?

Since COBRA is part of an employer plan, you cannot take the self-employed health insurance deduction for the premiums. However, you may be eligible to claim COBRA premium payments as an itemized deduction when you file your tax return.

What is excluded in a medical expense plan?

Some common excluded services include: Alternative medicine (e.g., acupressure, yoga, acupuncture, massage, biofeedback) Dental services. Vision care.

Who pays for COBRA after termination?

COBRA and Cal-COBRA

COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past.

Is COBRA a type of insurance?

How does COBRA insurance work? COBRA applies to most private sector businesses with 20 or more employees. It requires an employer's group health insurance plan to continue after qualifying life events.

How much does COBRA cost a month?

The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.

How do I report COBRA payments on my taxes?

According to the Federal tax laws, your unreimbursed COBRA payments are, in fact, deductible as medical expenses on your 1040 tax return in the same way that you can deduct unreimbursed payments for legal medical services provided by physicians, surgeons, dentists, and other medical practitioners, as well as any ...

Do I keep my deductible with COBRA?

If you choose a new plan through the Marketplace, your payments toward your deductible or out-of-pocket maximums will reset and go back to zero. However, if you choose COBRA, whatever you have contributed for the plan year will carry over.

What medical expenses are covered by health insurance?

Covered Expenses means expenses actually incurred by or on behalf of an Insured for services covered by this Policy. A Covered Expense is deemed to be incurred on the date such service or supply, that gave rise to the expense or the charge, was rendered or obtained.

Is it worth claiming medical expenses on taxes?

The medical expense deduction covers a wide variety of expenses. However, because of the high Standard Deduction and the 7.5% of AGI threshold requirement, it can be difficult to benefit unless you have a lot of out-of-pocket costs.

How does COBRA work with self-insured plans?

Cal-COBRA covers indemnity policies, PPOs and HMOs, but not self-insured plans. Unlike federal COBRA, church plans are covered under Cal-COBRA. Federal COBRA generally extends health coverage for 18 months. Individuals with certain qualifying events may be eligible for a longer extension (e.g., 29 or 36 months).

Can I claim my health insurance premiums on my taxes?

You can include health insurance premiums in your medical expense calculations. However, certain premiums are not eligible for medical expense deductions. You cannot include the following premiums in your tax deductions: Life insurance policies.

What does the IRS consider qualified medical expenses?

Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners.

Can I deduct my health insurance premiums if self-employed?

Key Takeaways. If you're self-employed, you may be eligible to deduct premiums that you pay for medical, dental, and qualifying long-term care insurance coverage for yourself, your spouse, and your dependents.

What proof do I need to deduct medical expenses?

You should also keep a statement or itemized invoice showing:
  • What medical care was received.
  • Who received the care.
  • The nature and purpose of any medical expenses.
  • The amount of the other medical expenses.

How long can you be on COBRA?

While COBRA is temporary, in most circumstances, you can stay on COBRA for 18 to 36 months.

Are COBRA premiums eligible for HSA reimbursement?

COBRA premiums are not eligible under a flexible spending account (FSA). They are eligible under a health savings account (HSA), and may be eligible under a health reimbursement arrangement (HRA). HRA account holders should check with their benefits administrator to determine eligibility for their plan.

Can I deduct COBRA premiums if unemployed?

[1] In addition to lost income, unemployment often means losing access to employer-provided health benefits. Most health insurance premiums are not deemed a “qualified medical expense,” meaning you can't pay them pre-tax from an HSA. One big exception is COBRA premiums.