Frequently Asked Questions about PHSPs
What you need to know about our Private Health Services Plans.
What is a PHSP?
A PHSP (Private Health Services Plan) is a plan for your business designed to be an alternative to traditional health insurance. A PHSP allows your employees to claim medical expenses and have the expense be 100% tax-deductible. You and your family members can take advantage of a PHSP for your health care needs. These health services include not just medical services but also dental, eye care, and a wide array of professional and cosmetic services.
A PHSP is 100% tax-free for your employees and you. The plan creates a 100% expense for the company for tax purposes. Your business will qualify as long as your business follows the guidelines the CRA has set out. To ensure your business qualifies, our experts are willing to work with you.
What are the requirements?
You are able to sign up for a PHSP if you are an incorporated business or a sole proprietor that pays income tax and you have medical expenses.
Are my dependants also able to claim using my plan?
Yes! Your dependants can claim medical expenses using your PHSP.
Does the PHSP include insurance?
There is no insurance included in the PHSP.
Is a medical checkup required?
No medical checkup is required to sign up for a PHSP.
Am I eligible for a PHSP if I have pre-existing conditions?
Yes. you are able to sign up for a PHSP if you have a pre-existing condition.
Are there monthly premiums?
No, one of the main benefits of a PHSP is no monthly premiums.
What am I able to claim under a PHSP?
There is an extensive list of medical expenses that you can claim on your taxes for a PHSP. This includes prescriptions, many dental services, eye services and more. Cosmetic surgery is covered if it is determined to be medically necessary or for reconstructive purposes.
Being able to offer your employees and yourself these plans is an attractive option for small business owners. You can claim your child’s braces, your laser eye surgery, and your loved ones’ prescriptions. Compared to traditional health insurance policies, a PHSP will cover 100% of many more services. Here are just a few items you are able to claim under a PHSP:
- Ambulance services
- Bathroom aids (such as railings, handles, etc.)
- Limb braces
- Cancer treatments
- Dental
- Hearing aids
- Laser eye surgery
- Walkers and mobility aids
- And more
Am I able to claim my current insurance premiums through the PHSP?
No, you aren’t able to claim your insurance premiums through the PHSP.
What are the tax benefits?
A PHSP allows you to offer your employees and yourself the ability to deduct 100% of your medical expenses from your taxes.
How hard is it to close a plan?
It is quite easy to close the plan, just notify us that you want to close the plan and we will close it for you.
How do you submit a claim?
You can easily submit a claim using our online form.
Do I need to send the original receipts to submit a claim?
No, you do not need to send the original receipts to claim an expense. We prefer a picture or a scan of the receipt when making a claim on our online form.
When will the plan come into effect?
As soon as you enroll in the plan your PHSP will start.
Can I claim a medical expense that was received before the plan started?
No, you are only able to claim an expense that was incurred after the start of the plan
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