I am covered by Medicare & BC/BS.  In addition I am covered by NY Life Ins Co of NY with a 25,000 deductible.  In computing the deductible do I use the doctors, charges or must I use amounts allowed by Medicare?

It depends on exactly how the policy is worded. Usually they are worded to favor the insurer so as we can only guess, they probably are based on what's unpaid after Medicare.