A corporation can pay and deduct for tax, medical insurance premiums. The premiums are not considered a taxable benefit. Expenses reimbursed by employers may be considered to be a Private Health Services Plan. You must be careful if you are an owner manager receiving these benefits and your other employees are not. The Income Tax Act makes a distinction on treatment of certain benefits and whether they are being received as a result of employment or shareholdings. See CRA position on Private Health Services Plans.