Qualified Medical Expenses Those paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, including transportation, meals lodging, certain capital expenditures, medical insurance premiums. In 2001 self-employed individuals may deduct 60 %of health insurance as a deduction for AGL. In 2002 will the percentage will increase to 70 No cosmetic surgery unless it treats illness or promotes proper body function.Qualified Medical Expenses • Those paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, including transportation, meals & lodging, certain capital expenditures, & medical insurance premiums. • In 2001 self-employed individuals may deduct 60 % of health insurance as a deduction for AGI. In 2002 will the percentage will increase to 70% • No cosmetic surgery unless it treats illness or promotes proper body function