Did you know that you can reduce the net cost of your surgery?
Tax credits for medical expenses, an insurance policy, and, in some provinces, reimbursement by the public plan are potential ways to do this. The Duval Clinic has prepared this document for your information.
Since many factors specific to each patient’s situation can impact these calculations, we recommend that you consult the links below, a CPA, and your insurer who can provide you with information based on your personal situation.
Tax credit for medical expenses
The credit for medical expenses is 15% at the federal level and 20% in Quebec
Reduction of medical costs
Eligible medical expenses are also reduced based on net income.
At the federal level, medical expenses are reduced by 3% of individual net income. For example, a taxpayer earning $60,000 can claim a 15% credit on medical expenses exceeding $1,800 ($60,000 x 3%). They cannot, however, be reduced by more than $2,635 ($2,479 indexed for 2023), which is 3% of the net income of $87,833.
In Quebec, medical expenses are reduced by 3% of the family’s net income, with no limit on the reduction. For example, if the family’s net income is $300,000, only the portion of the medical expenses that exceeds $9,000 ($300,000 x 3%) will qualify for the 20% credit.
| Medical expenses (tax year 2023) | ||
|---|---|---|
| Federal | Quebec | |
| Credit rate | 15 % | 20 % |
| Income-based medical expense reduction | Less than : 3% of the taxpayer’s net income up to 87 833 $ Maximum reduction of $2,635 |
3% of the family’s net income with no limit on the reduction |
- At the federal level, it is often advantageous to claim medical expenses on the spouse’s tax return with the lower net income when that income is less than $87,833.
- In Quebec, travel and accommodation expenses are eligible when medical care is unavailable within 200 km of the home.
- The amount of medical expenses claimed must be reduced by any other reimbursement (private insurance, public plan reimbursement)
| Example A couple with a net income of $200,000 (each $100,000) Hip replacement fee $23,500. |
||
|---|---|---|
| Tax credit | Federal: | $3129.75 |
| Quebec: | $3500.00 | |
| Total: | $6629.75 | |
Health Insurance
If you have a medical insurance policy, it may cover some of the medical services offered at the Duval Clinic.
Here is a list of items that may be included in your medical insurance: blood tests, electrocardiogram, physiotherapy, hospitalization in a private room, orthopedic implants, surgical fees, medication, cryotherapy, etc.
Professional medical services outside of the provinces
If you are not a Quebec resident, the Canada Health Act portability principle allows you to claim a reimbursement from your provincial government for professional fees paid to the Duval Clinic. The general practitioner, the anesthetist, and the surgeon are eligible expenses.
The Duval Clinic will prepare a reimbursement form for you. You must sign it and send it to your provincial health authority.
It is important to note that the amounts reimbursed by your government will only correspond to the equivalent public rates approved by each province. These rates are lower than those charged at the Duval Clinic. Also, you may have to deduct the amounts reimbursed from the medical expenses claimed on your income tax return.
In addition to orthopedic health, financial health is an important consideration!
References
Research Chair in Taxation and Public Finance at the University of Sherbrooke :
https://cffp.recherche.usherbrooke.ca/wp-content/uploads/2023/01/38_credit_frais_medicaux_2022_VF.pdf
Quebec: https://www.revenuquebec.ca/documents/fr/publications/in/IN-130%282022-10%29.pdf