23 June 1997 Ministerial Letter 9712168 - PUBLIC SERVICE HEALTH CARE PLAN, CHANGES TO

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

re. Treasury Board's $500 annual limitation on physiotherapy services under the terms of the Public Service Health Care Plan (PSHCP).

Position:

PSHCP is a "private health services plan" and this issue was discussed generally. Advise that Treasury Board approved the limitation on the recommendation of the PSHCP Board of Management which act independently as the governing body of the Plan.

Reasons:

DEPUTY MINISTER'S OFFICE (3) YS - 97-03111M
ASSOCIATE DEPUTY MINISTER (1)
ADM'S OFFICE (2)
PENDING
RETURN TO RULINGS 15TH FLOOR, ALBION TOWER

June 23, 1997

XXXXXXXXXX

Dear XXXXXXXXXX:

This is in reply to your letter of April 21, 1997, concerning the impact on your family of the recently introduced $500 annual limitation on physiotherapy services under the terms of the Public Service Health Care Plan (PSHCP). Minister Stewart has asked that I respond to your request for a review of this amendment.

Minister Stewart is an alternate member of Treasury Board. Treasury Board approved the $500 annual limitation on physiotherapy on the recommendation of the PSHCP Board of Management, which acts independently as the governing body of the Plan. Accordingly, I have taken the liberty of forwarding a copy of your letter to Mr. Jim Crandlemire, Chairperson of the PSHCP Board of Management, for his consideration.

The PSHCP is a "private health services plan," as defined in the Income Tax Act. As such, Revenue Canada's role is limited to ensuring that the plan continues to meet the requirements of the Act relating to private health services plans. Generally, private health services plans can only provide coverage for hospital or medical expenses which would otherwise qualify for the medical expense tax credit. In Ontario, fees paid to a qualified physiotherapist can qualify for the medical expense tax credit. However, while these fees may qualify as medical expenses under the Income Tax Act, each individual plan may choose to limit the amount and type of qualifying medical or hospital expenses for which it will provide coverage.

Whether or not the PSHCP is further modified as a result of your recommendation, you or your spouse may continue to claim a medical expense tax credit for that portion of physiotherapy fees for which you have not been reimbursed. If you pay a monthly contribution for supplementary coverage under the plan, that premium will also qualify for the medical expense tax credit.

I trust that these comments will be of assistance to you.

		Yours sincerely,

		Rob Wright

Sandra Short
971216
957-2136
May 14, 1997