No. The definition of qualified higher education expenses in 26 USC 529(e)(3) includes tuition, fees, books, supplies, and equipment required by the school, plus room and board for students who are enrolled at least half-time. Also, the American Recovery and Reinvestment Act of 2009 temporarily included the cost of computer equipment in 2009 and 2010 even if not required by the school. This definition does not include the cost of student health insurance.

No. The qualified expenditures are clearly detailed in your 529 plan documents! Write your Senators to get them to change the law and include this great use of 529 plans.

Karen - this would actually be a great use of 529 funds. iI's a shame that it's not. However, I would imagine that health care premiums paid by the student would be deductible in the instances that it passes the deductibility test. See more here - http://www.smartmoney.com/personal-finance/taxes/tax-breaks-on-medical-costs-19613/