Cannabis prescriptions are eligible medical expense, CRA confirms

We have NOT had much call from clients to add Medical marijuana to their benefit plans, due to the high cost ($1,000-$10,000/year)and possible increased frequency of claims.  Most insurance companies and TPA’s have allowed HSA’s to pay for the claims, and now this has been clarified by the CRA to be eligible and also as a Medical Expense Tax Credit on an employees personal taxes.

The Canada Revenue Agency has confirmed that medical cannabis purchased under prescription is an allowable medical expense at tax time.

The CRA sent a letter to the Canadian Medical Cannabis Industry Association last month confirming cannabis from a licensed producer qualified as a medical expense.