Health Insurance Costs

This is an optional verification.

Allowable health insurance expenses include premiums for health, drug, and hospitalization insurance policies, including those of Medicare and MassHealth.

The following expenses are not allowed:

The premiums for accident policies, such as those payable in lump sum settlements for death or dismemberment.
The premiums for income maintenance policies such as those that continue mortgage and loan payments while the beneficiary is disabled.

Verification of Health Insurance Expenses

Health insurance expenses must be verified via documentary evidence, or collateral contact must be explored if the client cannot obtain documentary evidence. Self-declaration of health insurance expenses may only be accepted as a last resort if the client has provided a reasonable explanation as to why they cannot obtain documentary verification or a collateral contact. However, it is important to note that anytime a client reports paying Medicare Part A or B, BENDEX must be used to verify the cost the client pays.

A client can get credit for medical expenses (including health insurance) only if:

they qualify for the medical deduction, and
their household’s total monthly medical expenses exceed $35.

Examples of documentary evidence of health insurance includes:

BENDEX validation of Medicare Part A or B payments made by the client;
for Medicare Part D or other prescription drug coverage, a letter or statement from the Social Security Administration or an insurance letter stating how much the client pays for this plan;
a copy of a health insurance receipt or bill;
co-payment receipts or bills;
a bill showing costs the client incurred towards their deductible, including an Explanation of Benefits from the health insurance company; or
any verification showing type of insurance, amount of premium and the name of the individual covered

Health Insurance Costs

Verification of Health Insurance Expenses

Last Update: May 20, 2026