With the new ruling when you roll double 1's as a medic that the person you are trying to heal takes damage(Which I like). Does that mean the mystics team ability will retaliate against the medic? Thanks.

Mystics is optional, so you won’t take a click of damage unless you really want to.

You won't even then. The reason that something like Toughness won't work against a Medic's critical miss click is that it isn't even technically damage, but an immediate turn of the dial. Can't activate the Mystics if it's not damage.