How to find financial help for out of pocket medical expenses
Fighting an illness requires mental, emotional, and physical strength. Unfortunately, it also requires money—often, a lot of it. Even with health insurance, many people struggle to pay high out of pocket medical expenses, and costs can vary by province and insurance type. In 2024, for example, Canadians spent an estimated $43.7 billion on prescription drugs, 21% of which was out-of-pocket spending.
If you’re wondering how to get rid of medical debt that was caused by out of pocket expenses, know that you’re not alone. There are numerous resources to help you get emergency financial assistance so you can focus on what’s most important: your journey to healing.
What are out of pocket expenses?
Out of pocket expenses are medical costs that are not covered by your insurance company. In Canada, provincial health plans cover hospital care and physician services, but many costs are not covered, including prescription drugs, dental care, vision care, and private care. Other examples of out of pocket expenses include mental health care, costly cancer treatments, physiotherapy, and chronic diseases, leaving you to pay the full medical bill. Below are five shocking facts about out of pocket medical expenses you need to know.
- According to the Global Health Expenditure Database, Canadians spent, on average, $1168.09 per person on out of pocket medical expenses in 2024.
- Health spending is growing faster than the economy, having been projected to increase by 4.2% in 2025 with economic growth increasing only by 2.6%.
- A 2026 survey found that 30% of Canadians reported that they’re in medical debt due to unexpected costs.
- More than 56% of Canadians have delayed or skipped seeking medical treatment due to out of pocket costs, according to a 2025 survey.
- About 25% of Canadians lack supplementary insurance and rely solely on their provincial health plans. Research has shown that with private insurance, the average Canadian saves about $2000 on out of pocket costs.
How to calculate out of pocket medical expenses
There are several factors going into how to calculate out of pocket medical expenses. This will be important for your taxes. The first thing you need to do is track your expenses carefully throughout the year. Keep receipts, bills, and any other medical documentation you may receive. Here’s what to include in your out of pocket expenses list:
- Prescription drugs, medical cannabis, and other treatment supplies, such as incontinence briefs or syringes for diabetes
- Prescription glasses or contact lenses and laser eye surgery
- Dental care, such as crowns, fillings, and root canals, along with orthodontic treatments like braces
- Paramedical services like physiotherapy, chiropractic services, mental health care, and speech-language pathology
- Fertility treatments
- Specialized care, such as that in a nursing home or in-home care
- Medical travel if you live 40 km away from a facility providing a type of care that’s not available near you
- Mobility and hearing aids, as well as other prescribed equipment (CPAP machines, heart monitors, etc)
- Service animal costs
- Private insurance premiums
Exclude the following:
- Anything covered by your provincial, private, or employer insurance
- Over-the-counter medications
- Cosmetic procedures
- Anything you were already reimbursed for
The federal Medical Expense Tax Credit allows you to deduct eligible expenses, which must exceed the lower 3% of your net income, or $2,834. This will reduce the amount of taxes you owe. Specific provinces may also have different programs addressing different aspects or amounts of out of pocket medical expenses.
Resources that help with out of pocket medical expenses
Discover a variety of resources, below, that can help you pay for out of pocket medical expenses—no matter your medical need.
1. Crowdfunding for medical expenses
Many have turned to crowdfunding to combat overwhelming medical costs. Medical crowdfunding allows you to quickly and easily reach out to a giving community to help relieve the burden of medical debt. Online fundraising is becoming increasingly popular because it allows people to raise money for absolutely any type of medical cost. People all over the world have raised money for medical expenses like dental costs, treating chronic illness, and even IVF and pregnancy costs. The following tips will help ensure your fundraiser is a success.
- Start by writing a compelling fundraiser story to connect with potential donors and help them understand why funds are needed and where they will go.
- Share your fundraiser on social media to reach an even wider audience. You can even ask friends and family to share on your behalf if you need some moral support.
- If you are raising a large amount of money—for example, to pay for cancer treatment—consider putting together a fundraising team of your family and friends. The more people to help promote your fundraiser, the better.
- Prepare multiple ways to ask for donations, depending on whether you’re asking someone you know personally, a community member, or a stranger online. Follow up with each donor, and consider sending a personalized thank you letter.
2. Nonprofits offering help for out of pocket expenses
Many nonprofits exist solely to help people pay for medical-related expenses. The four organizations below assist those who have existing insurance, but still need financial help.
The Canadian Cancer Society is the country’s largest national cancer charity and national charitable fundraiser for cancer research. It provides a wide range of financial support to cancer patients and their families, including for transportation, accommodation, wigs and prosthetics, and more.
This national organization helps victims of stroke and patients with heart disease receive the care they need. It offers a number of financial support programs that vary by province to help patients get funding for living expenses based on eligibility. It also has a helpful list of provincial resources, such as charities, government programs, and tax credits you may be eligible for.
This organization helps Canadians with diabetes live healthy lives by providing free resources and education about nutrition and fitness, as well as the risks associated with diabetes. While it doesn’t directly cover out of pocket medical expenses, it can help you navigate government systems and find the financial support you need.
This charity provides financial support in the form of Community Action Grants that support education and initiatives that address health inequities related to arthritis. It provides a number of free resources, such as support groups and mental health care, and can help you navigate the healthcare system, advocate for yourself, and find local support.
3. Assistance from the government for out of pocket expenses
If you meet specific qualifications, government assistance is another way to get help with bills. Here are three programs that may work for you:
The Disability Tax Credit (DTC) is designed to support people with disabilities or their caregivers by reducing the amount of income tax they have to pay. You may be eligible for this if you have a severe or lifelong impairment, as outlined by the Canada Revenue Agency. To apply, a doctor must certify your impairment, and you must submit the application form.
Employment Insurance sickness benefits
EI sickness benefits can provide you with up to 26 weeks of financial assistance during the time that you’re unable to work due to your illness. You can receive 55% of your earnings up to $729 per week. You will need to submit medical documentation of your condition along with the application form.
Provincial drug assistance programs
Some provinces provide financial assistance with prescription drugs outside of their healthcare plans. For example, British Columbia provides the income-based Fair PharmaCare plan, while the Ontario Drug Benefit covers over 5000 medications for senior citizens, those on social assistance, and those in long-term care.
See how others avoided medical debt by crowdfunding
Olivia’s bone marrow transplant
Olivia was in middle school when she was diagnosed with a rare cancer, T-Lymphoblastic Lymphoma. Oliva’s doctors recommended a bone marrow transplant to help kick cancer for good—but this $900,000 procedure wasn’t covered under their family’s insurance plan. Olivia’s brother was a 100% match for the transplant, so a family friend started a fundraiser to make the procedure a reality. The campaign raised over $300,000 in just two months, and Olivia is well on her way to her goal.
Save Raluca’s mom
When Raluca’s mom was diagnosed with mesothelioma, she was shocked. She was also terrified of treatment costs. Her mom wasn’t a US citizen and was uninsured. Raluca started a fundraiser and told the world her mom’s story. With a compelling story full of emotional details and posting frequent updates to keep her donors in the loop, Raluca touched supporters. To date, she has raised nearly $170,000 for her mom’s cancer treatment through her fundraiser.
Get relief for costly out of pocket medical costs
From minor surgeries to major cancer treatments, medical-related expenses aren’t cheap—with or without insurance. But there is help available; nonprofits and charities can offer support, and you can also turn to federal and provincial programs like tax credits or drug assistance.
If you’ve exhausted other options to conquer mounting medical costs, fundraising can help. In Canada, crowdfunding complements provincial health coverage. We know the situation may seem impossible, but every day we see people use medical fundraising successfully to receive both the financial and emotional support they need.
Sign up today and start your own medical fundraiser, so you can find financial help for out of pocket medical expenses and focus on what matters most to you.