Exploring the Role of the Canadian Personal Income Tax System in Supporting Individual and Family Healthcare Expenses

Tax policy is one vehicle to increase access and affordability to home care services. For example, Home Care Ontario is an advocate for expanding the beneficial tax treatment of healthcare expenses and was instrumental in the creation of the new Ontario "Seniors At Home Tax Credit". Amongst others, the non-refundable Medical Expense Tax Credit (METC) and the Refundable Medical Expense Supplement (MES) are two federal tax credits designed to help Canadians pay for eligible out-of-pocket expenses. Out-of-pocket medical expenses are important for Canadians seeking not only home care, but also prescriptions, mental health services, physical therapy, and a variety of other medical expenses. As Canadians age and access to employer-provided benefits decrease, out-of-pocket expenses will only increase and understanding how to help Canadians pay for these out-of-pocket expenses, including home care services is therefore crucial.