CRA indicates that coverage for employee's U.S. medical expenses would qualify if they were substantially METC-type expenses
CRA indicated that premiums paid by an employer under a Blue Cross plan, that would reimburse an employee for certain medical and health care costs incurred while in the U.S., would not be a taxable benefit (based on the exemption for private health services plans) provided that “‘all or substantially all’ of the premiums paid under the plan relate to medical expenses that are eligible for the medical expense tax credit (METC).” CRA further indicated that such “eligible medical expenses are not restricted to those paid in Canada or for medical services provided in Canada” – and that the insurer of the plan should determine whether this test in fact was being met.
Neal Armstrong. Summary of 12 December 2018 External T.I. 2017-0718661E5 under s. 248(1) - private health services plan.