Private Health Services Plan (PHSP)
Canadian Private Health
A Private Health Services Plan allows self-employed individuals, limited partnerships and corporations to insure their employees and use the medical and dental expenses as a tax deduction. PHSPs are approved by the Canada Revenue Agency so long as they are administered by a third party trustee.
Any contributions made by an employer toward the Private Health Services Plan of an employee, the employee’s spouse and/or other benefitting dependents are excluded from the employee’s income and thus not taxed.
- Private Health Services Plans Can Include Coverage of:
- Psychology and psychotherapy
- Hospital services
- Medications, including Chinese medicine
- Prescribed medical treatments and therapies
- Prescribed devices, such as prosthesis and monitors
- Dental services
- Laboratory exams and tests
- Ambulance charges
- Equipment needed for home or vehicle to accommodate health condition
- Home care
- Transportation and accommodation if treatment necessitates travel
Custom Craft the Benefits Plan that Suits You and Your Employees Needs
A PHSP allows you, the employer, to create a benefits plan for you and your employees that meets yours and their needs. Plans may include catastrophic coverage, therapeutic services and even travel insurance. Services required will be fully covered regardless of where they are fulfilled, including the United States. There are absolutely no health requirements that need to be met in order to receive coverage from a PHSP – which means no medical examinations or other health qualifications be met.
Plans may also be tailored to include only dental and vision benefits. Savings from a PHSP of this type can amount to nearly 70 per cent as compared to other premiums charged by other benefit plans.
A PHSP is a pay-as-you-go program, which means no monthly fees or premiums. Only a one-time initial start-up fee, entirely tax deductible, is required.
The PHSP also allows the option to carry forward unused benefit amounts one full year.
Conditions of the PHSP
All full-time employees of a company opting to use this plan must be granted access to its coverage, or fill out a form indicating their choice to decline participation.
Owners and employees must draw a minimum salary, recommended as at least $400 per month, to be eligible to use the plan.
The PHSP may not be eligible for use by companies registered in the province of Quebec.
Some expenses do not apply. These include over-the-counter medications and supplements, acupuncture treatments not performed by a licensed physician, health programs provided by resorts or health clubs, non-prescription birth control, etc.