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Eric Simpson, Chair, Health Committee
PLEASE NOTE: The material regarding the health plan found on this Web site is a summary of documents and is for guidance only. Before you make any final judgements, contact Johnson Insurance or read 'What's New' on the Provincial RTO/ERO Web site
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The RTO/ERO Extended Health Plan covers drugs, sera, and injectables that legally require a prescription.
In many instances, RTO/ERO also extended the Prescription Drug benefit to those who require life-sustaining, over the counter (OTC) medications, when certain medical criteria were met. OTC medications are those that can be sold without a prescription.
In the 2008 budget, the Canadian government announced that OTC medications were ineligible for the medical expense tax credit.
In 2009, the Canadian Revenue Agency reinforced the government's position that OTC medications were ineligible for the tax credit.
In addition, in 2009, many OTC medications were reclassified from a Drug Identification Number (DIN) to a Natural Health Product Number (NHP) which did not qualify for the tax credit.
Because of the above changes, the RTO/ERO Extended Health Plan can no longer cover OTC medications or those reclassified as NHPs.
If coverage were to continue, premiums paid for the Extended Health Plan would not be eligible for the medical expense tax credit.
Basic health care services are exempt from the Goods and Services Tax (HST).
Purely cosmetic procedures, as well as goods and services related to those procedures are not considered to be basic health care and therefore are subject to tax.
Taxable procedures would generally include surgical and non-surgical procedures aimed at enhancing one`s appearance such as liposuction, hair replacement, botulinum toxin injections, and teeth whitening.
Cosmetic procedures will continue to be tax exempt if required for a medical or reconstructive purpose such as congenital abnormality, personal injury, or a disfiguring disease.
A recent survey by the Canadian Institute for Health Information found that 62% of Canadians age 65 or older are using five or more classes of prescription drugs.
The study found that slightly more than one in 20 (6%) were using 15 or more different classes of drugs.
Older seniors were more likely to be multiple-drug users with about 29% of seniors age 85 and older submitting claims for 10 or more types of drugs in 2008, compared to 17% of seniors 65 to 74.
Most commonly used drug classes are for treatment of chronic conditions in general, and cardiovascular conditions in particular, such as high blood pressure and heart failure.
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Last Updated: 2010-06-20
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