As per the amendment in the budget 2018, the tax exemption on reimbursement of the medical expenses up to Rs.15,000/- is omitted along with the transport allowance of Rs.19,200/- and is replaced by the standard deduction of Rs.40,000/-and is made applicable from FY 2018-19 (i.e. starting 1st April 2018).
Therefore, the amount said above (i.e., Rs.9,500) is taxable under Income Tax Act.