Premiums paid to private health services plans

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

Yes. Premiums paid by an individual to a private health services plan (PHSP) are eligible medical expenses under the CRA's Medical Expense Tax Credit (METC). No prescription is required. Because an HSA reimburses METC-eligible expenses, these premiums are reimbursable through a Health Spending Account when paid out of pocket.

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. Premiums paid to a qualifying private health services plan are eligible under paragraph 118.2(2)(q) of the Income Tax Act, as discussed in Folio S1-F1-C1.

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)".