Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: General question about private health services plans
Position: General comments provided.
Reasons: The law.
October 30, 2012
XXXXXXXXXX
Dear XXXXXXXXXX:
The office of the Honourable James M. Flaherty, Minister of Finance, forwarded me a copy of your correspondence about the income tax treatment of amounts paid for long-term care (LTC) insurance premiums. I apologize for the delay in replying.
Amounts paid for coverage under an LTC plan may qualify as medical expenses under the Income Tax Act if they were paid as a premium, contribution, or other type of payment to a private health services plan, as defined in the Act.
You can find information about private health services plans in Interpretation Bulletin IT-339R2, Meaning of private health services plan [1988 and subsequent taxation years], which is available on the Canada Revenue Agency (CRA) Web site at www.cra.gc.ca/E/pub/tp/it3339r2.
The bulletin explains that a plan will be considered a private health services plan only if it limits coverage to hospital care, hospital expenses, medical care, or medical expenses that normally qualify as medical expenses under the Act. Therefore, if a plan includes benefits in addition to medical expense payments, it would not meet the definition of a private health services plan.
You can find more information on eligible medical expenses in Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, at www.cra.gc.ca/E/pub/tp/it519r2-consolid.
I trust that the information I have provided is helpful.
Yours sincerely,
Gail Shea, P.C., M.P.
c.c.: XXXXXXXXXX
Gwen Moore
957-2141
2012-045190
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