percent of the “other” benefits must be a hospital
expense or an expense that is incurred in
connection with a medical or hospital expense.
As there is no specific list of what would qualify
as a connected expense within ten per cent of
other benefits, ARTA has applied its discretion
to ensure that the ARTA Retiree Benefits Plan
remains onside with the Income Tax Act and the
plan continues to be considered a PHSP.
This means that ARTA will continue to include
in the annual Premiums and Claims Statement
the premiums paid for those items covered by
the Emergency Travel component of the Total
Health and Ultimate Health plans, which may
not be considered eligible expenses for the METC
(such as vehicle return and pet return), so ARTA
members can claim one hundred per cent of
the premiums paid for the health plan on their
annual tax return. Prior to 2015, the premiums
reported on the Premiums and Claims Statement
were reduced by twenty-five per cent to take into
account that some covered items were not eligible
expenses under the METC.
CRA’s ruling further
confirms that those items
not eligible for inclusion
under the list of METC
eligible items will continue
to not be covered by the
ARTA Retiree Plan, as they are not permitted to
be covered under a PHSP. Items that the plan is
not allowed to cover include gym memberships,
vitamins and other non-life-sustaining over-the-
counter medications, and medical practitioners
not recognized by CRA, such as certain natural
health practitioners.
The ARTA Retiree Benefits Plan also does not
include a Health Care Spending Account (HCSA)
component because these types of plans only
work in an employer-sponsored group benefit
plan environment, where a plan sponsor can use
an HCSA to provide tax-effective remuneration to
their covered employees. In a voluntary, member-
paid plan like ARTA’s, the tax advantages of
having an HCSA are not attainable, since all
premiums are already paid for by covered
members with after-tax dollars, with no premium
cost-sharing being provided by an employer. You
are better off to claim the expenses associated
with the purchase of eligible medical expenses
(such as your eligible medical expenses not
reimbursed by the ARTA plan and the premiums
you pay for the ARTA plan coverage) when
completing your annual tax return, which, as
mentioned above, is permitted according to the
Income Tax Act.
ARTA and the ARTA Health Benefits
Committee will continue to review plan members’
suggestions for new or additional coverage of
medical aids, devices, and services that would
benefit other plan members in order to ensure
that ARTA continues to offer the best
group benefit plan. If you wish to make
a suggestion, please do so by sending a
letter to the chair of the ARTA Health
Benefits Committee, care of the ARTA
office, or via email to
info@arta.net. ●
news&views SUMMER 2019 | 13