Rev. Rul. 56-18

The taxpayer has several hospitalization insurance policies which cover indemnification for hospital and doctors' bills but do not cover indemnification for nursing fees. Amounts received by the taxpayer as indemnification for hospital and doctors' fees exceeded his expenditures for these items. Held, in computing the deduction for medical expense allowable under section 213 of the Internal Revenue Code of 1954, the aggregate amounts expended by a taxpayer for medical care must be reduced by aggregate indemnities received under the hospitalization insurance policies, in arriving at the net deductible medical expense, which is subject to the limitation provided by section 213 of the Code, irrespective of the fact that such policies do not provide indemnification for certain of the medical expenditures.