Can You Claim Medical Expenses Covered by Insurance?

Many Canadians who experience serious illness or injury find themselves facing unexpected out-of-pocket medical costs—even when they have insurance. If you’ve paid for care or treatment this year, you may be wondering: can you claim medical expenses covered by insurance on your tax return? 

The answer depends on whether you were reimbursed, who paid for the expense, and whether the cost qualifies under the Canada Revenue Agency (CRA) rules. 

In this post, we’ll walk through what expenses are claimable, how insurance affects your tax credit, and how to calculate your eligible amount. We’ve drawn on the CRA’s official medical expense guidelines to help you better understand what applies in your situation.

 

If Insurance Paid Part of the Expense, Can You Still Claim It?

Yes. You can claim a medical expense on your tax return only for the portion that was not reimbursed by your health insurance plan. That means if your insurance covered all or most of the cost, only the unpaid remainder is eligible for the medical expense tax credit. For example:

• You pay $1,000 for physiotherapy.
  
• Your private health services plan reimburses $700.
  
• You can claim the remaining $300.

 

What Expenses Qualify Under CRA Rules?

The CRA recognizes a broad range of tax deductible eligible medical expenses. These include routine treatments as well as services often used in recovery from an accident or disability. Some of the most common medical expenses you can claim (if unreimbursed) include:

• Fees paid to a licensed medical practitioner
  
• Ambulance service or hospital services
  
• Assistive devices like hearing aids
  
• Medical cannabis prescribed by a doctor
  
• Home care from a personal support worker
  
• Vehicle expenses and public transportation expenses if you must travel at least 40 km (one way) for care
  
• Treatment at a licensed private hospital
  
• Medical treatment outside Canada, in some cases
   

You can also claim certain private health insurance premiums, and costs associated with diagnostic tests, therapeutic treatments, and mental health services. However, purely cosmetic procedures, gym memberships, and over-the-counter items (unless prescribed) are not eligible.

 

Can You Claim Medical Expenses for a Spouse or Dependent?

Yes. You can claim eligible medical expenses paid for:

• Yourself
  
• Your spouse or common law partner
  
• Your children under 18
  
• Certain dependents, including a common law partner’s children or parents
   

The key is that you (or your partner) must have paid the medical services expense. If the expense was paid by someone else—such as an employer, insurer, or other relative—it cannot be claimed by you unless that payment is included in your income. Also, only one person can claim the expense. 

How Much Can You Claim?

You can claim the portion of your total eligible medical expenses that exceeds the lesser of:

• 3% of your or your dependant’s net income, or
  
• $2,635 for the 2024 tax year, as set out in the Income Tax Act
   

Only the amount above that threshold can be used to calculate the non refundable tax credit on your federal tax return. 

 

When Does It Make Sense to Get Legal Support?

While tax preparation is best handled by a qualified accountant or tax professional, legal advice can become essential when your medical expenses are tied to an injury, accident, or insurance dispute. 

In some cases, people are forced to pay out of pocket not because care wasn’t needed—but because insurers refused to cover it, delayed their response, or paid less than what was fair under the policy.

Legal support may be especially helpful in the following situations:

• Accident Benefit Claims (Motor Vehicle Accidents): If you’ve been injured in a car accident and your accident benefit claim has been delayed, denied, or capped by policy limits, you may be stuck covering the cost of treatment on your own. Our Ottawa car accident lawyers can help ensure your insurer is meeting its obligations. 
• Short-Term and Long-Term Disability Claims: Disability benefits are supposed to provide security during periods when you can’t work—but not all claims are accepted, and many are cut off too soon. Our insurance lawyers work with individuals who’ve been denied short-term disability or long-term disability benefits, and we fight to get them the support they’re owed. 
• Fire and Property Insurance Claims: If a house fire or other property loss has resulted in injury or out-of-pocket expenses—and your insurer isn’t responding fairly—our legal team can help. We represent clients in fire insurance disputes, especially when injuries or living expenses become part of the broader claim. 
• Life and Critical Illness Insurance Disputes: In situations involving life insurance or critical illness coverage, insurers may deny benefits based on technicalities or outdated medical records. Our legal professionals can help you pursue the benefits your family is entitled to. 

At the end of the day, you shouldn’t have to navigate these challenges alone. Our lawyers focus exclusively on personal injury and insurance law, which means we understand the pressure you’re under—and the systems you’re up against. 

 

How McNally Gervan Can Support You

At McNally Gervan, we help our clients understand their rights when dealing with insurers, and we advocate for fair compensation when claims are delayed, denied, or underpaid. 

If you’ve been injured in a car accident, slip and fall, or other serious incident, and you’re now facing mounting health expenses, we can help you take steps to recover what you’re owed. 

If you’re dealing with unreimbursed care, unclear insurance decisions, or a long recovery with no clear path forward, reach out to our team for guidance. You don’t have to manage it all alone.