Rev. Rul. 68-451

During 1967, a taxpayer paid premiums on an insurance policy that provided payment of a specified amount for each week (not to exceed a specified number of weeks) that he was hospitalized as a result of sickness or injury. These payments were to be made even though the taxpayer received reimbursement for his hospital bill from other insurance policies or from other sources.

Section 213(a) of the Internal Revenue Code of 1954 allows a deduction for amounts paid for insurance covering medical care. However, effective for taxable years beginning after December 31, 1966, section 213(e) of the Code provides specifically that medical expense deductions are permitted for insurance premium payments only if, and to the extent that, the insurance policy affords actual medical care coverage.

Held, premiums paid by the taxpayer on this insurance policy are not amounts paid for insurance covering medical care.