IRS Approves Physicals, Body Scans and Pregnancy Tests as Medical Expenses

January 7, 2008

IRS added three types of expenses to the approved list of medical expenses when it issued Revenue Ruling 2007-72 in December. Section 213 of the Internal Revenue Code broadly defines medical expenses for the purposes of the medical expense tax deduction and for reimbursement under a Health FSA, Health Reimbursement Arrangement or a Health Savings Account.

The first expense category is an annual physical exam. When performed by a physician, physicals are reimbursable. It matters not that there may be no treatment for a specific disease, illness or injury. That is because medical diagnosis is involved.

The second category involves full-body electronic scans. These body scans examine internal organs in great detail and may precede an office visit to the doctor. As a result, they are often performed without a doctor's recommendation or approval. However, because they serve "no non-medical purpose", they are reimbursable. It matters not that this procedure is typically expensive and that cheaper alternatives may be available (e.g., X-rays).

The third category involves pregnancy tests, including those available over the counter. These tests have a medical purpose. It matters not that they do not detect any disease, illness or injury but rather detect the healthy functioning of the body. Anxious mothers-to-be can take comfort that the IRS did not put any limit on the quantity of tests that can be reimbursed.

A copy of the Revenue Ruling is available on page 1154 of Internal Revenue Bulletin 2007-50: www.irs.gov/pub/irs-irbs/irb07-50.pdf.