Premiums Paid to Private Health Services Plans

Are premiums paid to private health services plans CRA eligible in Canada?

Yes. Premiums paid out of pocket to a private health services plan (PHSP) are CRA-eligible medical expenses, which means they're reimbursable through your HSA. No prescription is required.

What Qualifies

• Premiums paid personally for a private extended health or dental insurance plan
• The employee's share of group benefit plan premiums, where those premiums were not included as a taxable benefit on the employee's T4
• Premiums for travel health insurance plans that qualify as a PHSP

What Does Not Qualify

• Premiums paid by your employer and not included in your taxable income
• Provincial and territorial government health care plan premiums

Frequently Asked Questions

Are PHSP premiums CRA eligible?

Yes. PHSP premiums qualify under paragraph 118.2(2)(q) of the Income Tax Act when paid out of pocket by the individual.

Can I claim private health plan premiums through my HSA?

Yes. Out-of-pocket PHSP premiums that were not employer-paid benefits are reimbursable through a Health Spending Account.

Source

Based on the CRA's official eligible medical expenses list and Income Tax Folio S1-F1-C1, "Premiums paid to a private health services plan (PHSP)".