Looks like ich. Medication won't help until the parasites are in the free floating stage, I'd do a water change and remove the medication using carbon. Then, raise the temperature of your tank slowly (1-2 degrees every 30-60 minutes) until your tank is at 86-90*F. Make sure to use an airstone and increase surface agitation since there is less oxygen in warmer water. The higher temperatures will speed up the life cycle of ich, so it will look worse at first, usually for the first three or four days, then will start looking better. Above 86 degrees the parasites can't reproduce, above 88 degrees they will start to die. Be sure to vacuum your substrate religiously since the parasites will be down there waiting for a host to swim by and keep water as clean as possible. Leave the temperatures increased for about two weeks, or at least a week after seeing all white spots gone from your fish to ensure the parasites are dead. You can also give your fish a salt bath in a separate container to help soothe their wounds and increase healing from the cysts.
When I had my first ich outbreak I tried medicating with API General cure and I lost fish because of the medication, when I treated the entire tank with the heat method everyone survived unharmed. Good luck.
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