Diabetes Medical Expense Deductions: What People with Diabetes Can Write Off in 2025

Diabetes is one of the most expensive chronic conditions to manage in the United States, with average annual out-of-pocket costs ranging from several hundred dollars for well-insured patients to thousands for those with gaps in coverage. The good news: nearly all diabetes-related medical expenses qualify for the federal medical expense deduction. Here’s everything you can deduct in 2025.

Qualifying Diabetes Expenses: A Comprehensive List

Insulin and Diabetes Medications

Insulin has special status under IRS rules: it’s explicitly deductible even when sold over the counter (as it now is in many states). Other diabetes medications — including metformin, SGLT2 inhibitors (Jardiance, Farxiga), GLP-1 receptor agonists (Ozempic, Trulicity, Victoza, Wegovy), DPP-4 inhibitors, sulfonylureas, and all other prescription diabetes drugs — are deductible prescription medications.

This is particularly significant for the newer GLP-1 medications, which can cost $800–$1,400/month out of pocket. If you’re paying significant amounts for Ozempic or similar drugs, those costs are fully deductible medical expenses (subject to the 7.5% AGI floor).

Monitoring Supplies and Equipment

Blood glucose monitors (glucometers) — The device itself and all ongoing supplies
Test strips — Ongoing test strip costs are deductible
Lancets and lancing devices
Continuous Glucose Monitors (CGMs) — Including the Dexcom G7, FreeStyle Libre, Guardian, and other CGM systems; deductible costs include the receiver/phone app, sensors, and transmitters
Insulin pumps — The pump itself plus all consumables (infusion sets, reservoirs, pump supplies)
Insulin pens and needles — Reusable pens and pen needles
Sharps disposal containers

Doctor and Specialist Visits

Primary care and endocrinologist visits
Certified Diabetes Care and Education Specialist (CDCES) visits
Registered dietitian consultations for diabetes management
Ophthalmologist visits for diabetic eye exams (diabetic retinopathy monitoring)
Podiatrist visits for diabetic foot care
Nephrologist visits for kidney monitoring
Cardiologist visits for cardiovascular risk management

Lab Tests and Diagnostic Costs

HbA1c tests
Fasting blood glucose and other lab panels
Kidney function tests (creatinine, eGFR)
Cholesterol and lipid panels
Urine microalbumin tests

Diabetes Education Programs

Diabetes self-management education and support (DSMES) programs — structured programs run by certified diabetes educators to help patients manage their condition — are deductible medical expenses. These programs, when formally prescribed by a physician, count as medical treatment.

Complications Treatment

All costs for treating diabetes complications are deductible: diabetic neuropathy treatment, retinopathy treatment and monitoring, nephropathy management, wound care for diabetic foot ulcers, peripheral vascular disease treatment, and related hospitalizations or procedures.

What Isn’t Deductible for Diabetes Management

A few common diabetes-adjacent costs don’t qualify:

Special diabetic foods — Low-glycemic foods, sugar-free products, and special diabetic meal plans are not deductible because food is a normal personal expense regardless of dietary restrictions
General nutritional supplements — Vitamins and supplements not specifically prescribed for a deficiency are not deductible
Gym memberships — Even though exercise is part of diabetes management, gym memberships for general exercise are not deductible
OTC medications — Pain relievers, antacids, and other OTC items purchased for diabetes-related symptoms are not deductible

HSA and FSA Benefits for Diabetics

Because diabetes generates many ongoing medical expenses, an HSA or FSA is particularly valuable. All the expenses listed above (insulin, CGM supplies, pump supplies, test strips, etc.) are qualifying expenses for HSA and FSA purposes. By paying with HSA or FSA funds, you effectively get a tax benefit on every dollar of diabetes spending, without needing to clear the 7.5% AGI threshold or itemize. The only limitation: expenses paid with HSA or FSA funds can’t also be deducted on Schedule A.

The 7.5% AGI Threshold for Diabetics

People with Type 1 diabetes in particular face high ongoing costs that may make the Schedule A deduction meaningful. If you’re using a CGM, insulin pump, and multiple daily injections — and your insurance requires significant cost-sharing — your annual out-of-pocket costs can easily run $3,000–$10,000 or more even with insurance. Combined with other medical expenses, this often clears the 7.5% floor for moderate-income taxpayers.

The Bottom Line

Virtually every direct medical cost of managing diabetes — insulin, CGMs, pumps and supplies, test strips, medications, doctor visits, lab tests, and diabetes education — is a deductible medical expense. The key is that you can only deduct out-of-pocket costs paid with after-tax dollars (not HSA or FSA funds), and all costs are subject to the 7.5% AGI threshold. For diabetics with significant ongoing expenses, tracking every qualifying cost carefully and considering both the HSA strategy and the Schedule A deduction can produce meaningful tax savings.