CRA Says CCC Co-Payments Qualify as Medical Expenses

By Andrew Rickard | July 13 2015 11:45AM

The Canada Revenue Agency (CRA) has said that complex continuing care (CCC) co-payments qualify for the Medical Expenses Tax Credit.

photo_web_1378 In Ontario, when patients have long-term illnesses or disabilities that require chronic care and are essentially permanent residents in a hospital, they may be charged a complex continuing care co-payment. It covers the cost of room, board, and other necessities in addition to medical care. The current rate is $1,774.81 a month or $58.35 a day. In a recent Technical Interpretation (2015-0574831E5 E), the CRA was asked if these CCC co-payments would qualify for the Medical Expenses Tax Credit.

"In our view, the complex continuing care co-payment paid to a public hospital, although identified as being for meals and accommodation while the patient is receiving medical services, can be considered to be in respect of medical services of the type offered at a hospital and therefore, would be eligible under paragraph 118.2(2)(a) of the Act as a medical expense," wrote Pamela Burnley, an accountant and manager of tax credits and ministerial issues in the Business and Employment Division of the CRA's Income Tax Rulings Directorate. "The amounts paid may be claimed on either line 330 or line 331 on Schedule 1 to the Income Tax and Benefit Return."

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