Your total deduction for medical expenses, including all costs that relate to diabetes, are only deductible to the extent the total exceeds 10 percent of your Adjusted Gross Income (AGI).his means that when you total up all of the medical bills you pay during the year, only the portion that is more than $3,000 can be claimed as a deduction. For example, if your total medical expenses for diabetes and other health-related issues cost $3,800, you can claim a $800 deduction.