Private health services plan

A medical care insurance plan or hospital care insurance plan (or both), or an insurance contract covering medical expenses, hospital expenses or any combination thereof, provided the plan or contract meets one of the following conditions:

It covers only services or expenses that qualify for the non-refundable tax credit for medical expenses.
It essentially covers services or expenses that qualify for the non-refundable tax credit for medical expenses, and the premium (or any other amount payable) for coverage is substantially attributable to such medical expenses.

A plan or contract established or provided for under provincial legislation to which the federal government contributes under fiscal agreements is not considered a private health services plan.

Reference: 1

This definition includes group insurance plans that cover such services or medical expenses, as well as contracts and plans that provide full or partial coverage of dental or vision care expenses.
To qualify as a private health services plan, a plan must involve one person agreeing to compensate another, for an agreed consideration, for a loss or liability related to an event that may or may not occur. If an employer has arranged to reimburse employees for expenses they or their dependants incur for medical, hospital or dental care, this arrangement may qualify as a private health services plan.

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