Private Health Service Plans (PHSP) for Canadian Businesses

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Collection And Conservation Of Stem Cells in a Private Health Services Plan

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Can a Private Health Services Plan be used with respect to expenses related to the collection and conservation of stem cells?

CRA stated in 2010 that expenses incurred for the collection and conservation of stem cells do not qualify as medical expenses for purposes of claiming a medical expense credit under ITA s. 118.2. It is CRA’s view that ITA s. 118.2(2)(a) applies only to medical expenses incurred for the treatment of a pre-existing medical condition. Further, ITA s. 118.2(2)(o) applies only to medical expenses paid for laboratory, radiological, or other diagnostic procedures or services prescribed by a medical practitioner or dentist that are necessary to maintain health and prevent disease or to assist in the diagnosis or treatment of any injury, illness, or disability. Expenses incurred for the collection and conservation of stem cells are not incurred for the treatment of a pre-existing medical condition, to maintain health, to prevent disease, or to assist a medical practitioner or dentist in diagnosing or treating an injury.

If expenses qualify for the medical expense tax credit (METC) then they also qualify under a PHSP.

PLEASE NOTE that the above blog post, although believed to be correct at the time of posting, may not represent the current position of the CRA. Further this blog is not intended to provide legal, accounting, or other professional advice. If legal, accounting, or other expert assistance is required, the service of a competent professional person should be sought.