Payments on behalf of an individual made to a person or institution that furnished medical care to that individual are exempt from the federal gift tax as long as they meet certain statutory and regulatory requirements. Which of the following statements is correct regarding medical services?

A. They may not include diagnosis and treatment of disease.

B. They may not include payments for transportation and medical insurance premiums.

C. They must be deductible for income tax purposes per IRC Section 213(d).

D. They must exceed 7.5% of AGI before allowed the exclusion.