What is a Private Health Services Plan (PHSP)
PHSP's were introduced as a cost efficient and tax effective means of providing health and dental benefits for small and medium sized businesses as well as incorporated professional firms.
You pay your health and dental expenses as you normally would. Your business then pays ProfMed (the plan administrator) a payment to cover the expenses, plus an administration fee (both of which are tax deductible). ProfMed then reimburses you (the employee) with a tax-free payment of the expense incurred.
The PHSP is an inexpensive way for incorporated employers to provide Tax efficient health and dental services for all classes of employees and their dependents. These services, available through ProfMed, are 100% tax deductible to the corporation.
Tailor the right plan for you, your dependents and your employees. Never pay for coverage or healthcare benefits that you don't use or need.
Whether you require prescription drugs, physiotherapy, dental braces for you or your children or any other health and dental treatment, ProfMed can help you decide on the benefit package that best fits your family's needs.
The Private Health Services Plan will cover most major medical expenses including non-traditional medical services and treatments.
With conventional medical and dental plans you pay a monthly premium whether you incur expenses for that month or not. The Private Health Services Plan however differs from traditional health and dental plans in that you are not required to pay a monthly premium. Payment is only made on a "claims re-imbursement" basis.
As a business owner or incorporated professional, your health and dental expenses can be paid with pre-tax dollars through your company, creating a legitimate deduction.
On a personal level, 100% of your health and dental care costs are reimbursed on a tax-free basis to you. This enables you to deduct health care expenses easily, efficiently and cost effectively.
Through the Private Health Services Plan, you, the owner, set the level of coverage and services for your employees. Even if you already have an existing insurance plan, a PHSP allows you to deduct the remaining expenses your existing plan does not cover.
This program works by directly reimbursing all eligible health and dental expenses to you and your employees who are on the plan.
Employers are advised to read CRA guidelines as well as the Cautionary note prior to setting up a PHSP. Note too that all claims are subject to audit by CRA.
