Under §213, a taxpayer is allowed to deduct the cost of preventing, treating, curing, mitigating, and diagnosing a disease that is existing or imminently probable for themselves or a family member.
Doctors now can store cord blood of an infant that contains stem cells that may be used to treat or cure a disease. However, the cost to collect or store umbilical cord blood of an infant is not a deductible medical expense if the disease that they are storing the blood for is not imminent. The cost of the collection and storage based on possible future diseases that may arise in the child are nondeductible. If the disease for which the cord blood is stored is imminent, the cost to store the blood can be determined to be a deductible medical expense relating to the prevention of an imminent medical disease.