Medical & Dental for Business Owners

New for Business Owners

The Secret to Saving Thousand$ on your Health & Dental Expenses.

A Private Health Services Plan is an innovative way for business owners to tax-deduct money spent on all healthcare and dental services. It can be used on its own or in combination with existing group insurance coverage. With today's rising healthcare and dental costs and aging population, it is an ideal way to maximize tax-deductibility, customize flexible benefits and reduce costs.

• Who Qualifies?
• What's Covered?
• Frequently Asked Questions
• In Province Medical /Travel Medical Coverage

Who Qualifies?

1. Corporations
   
   Increasingly, corporations are facing rising benefits costs combined with more restrictive contract wording. Now, corporations can take advantage of a new approach that could save up to 30% and provide increased flexibility and control. There are no limits or conditions. Provincial Medical / Travel Medical is available but not compulsory for Corporations.
   
   
2. Unincorporated/ Self-employed individuals
   
   Before 1998, there were only two ways for self-employed individuals to pay for medical and dental expenses:
   
   Group Insurance - Many services are not covered and are subject to both deductibles and co-insurance.
   
   Pay Cash - No or little tax deduction due to the 3% medical tax credit rule.
   
   With a PHSP, self-employed individuals and unincorporated entities can completely tax-deduct money spent on all eligible healthcare services. PHSP’s can be used on their own or in combination with existing group insurance coverage. Annual limits are $1500 for each adult and $750 for each child.

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What's Covered?

Qualified expenses under the Private Health Services Plan (PHSP):
[from A to Z]

Note: This is a partial list. All allowable expenses must qualify as outlined in the Income Tax Act (IT- 519R2)

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Frequently Asked Questions?

Q.: What is a PHSP?

A.: A PHSP is a Revenue Canada approved plan that allows self-employed individuals and Corporations to tax-deduct their health and dental expenses in a tax-effective and cost-efficient manner.

Q.: What is the maximum annual deduction allowed?

A.: For corporations, there are no annual limits. However, for unincorporated individuals and their families, there is a limit of $1500 per adult per year and $750 per child per year. For example, two adults and two children would be entitled to a maximum of $4500 per year.

Q.: Does it matter who spends the money from the household maximum?

A.: No it doesn’t matter. Anyone in the family can spend up to the total allowable amount for the entire family. For example, the entire $4,500 from the previous example could be applied to the wife’s laser eye surgery or the children’s orthodontic treatments.

Q.: What’s the cost?

A one-time tax deductible setup fee of $200 is required, and then you pay only a 10% administration fee (plus applicable taxes) on actual expenses.

Q.: What happens to the money in the plan?

A.: The money you contribute goes in a trust account and is withdrawn tax-free provided it is used for healthcare expenses.

Q.: Who administers the PHSP?

A.: Please click here to see a listed of recommended vendors.

Q.: How are PHSP’s administered?

A.: Claims can be paid in one of two ways. The healthcare practitioner – for example, a dentist – can bill the PHSP provider directly. The second method – particularly for smaller expenses – is to pay for the expense and submit it to the PHSP provider for reimbursement.

Q.: How do I keep track of all my expenses?

A.: The the PHSP provider will do this for you. They will send an annual statement detailing all money received and all claims paid. At year-end, you will have one comprehensive statement to take to your accountant for income tax filing purposes.

Q.: How do I go about setting up the plan?

A.: Fill out the on-line application form and someone will contact you to guide you through the process.

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In Province Medical / Travel Medical coverage
(Compulsory for unincorporated / self - employed entities)

In Province Medical

If you and/or your covered dependents require medical or surgical treatment in your own province of residence, this plan will pay for the following covered expenses after you have satisfied the deductible. Please note that each covered expense is subject to a maximum of $25,000 per calendar year per accident or sickness.

Deductible:

• $1,500 for Single Coverage
• $3,000 for Couple Coverage
• $4,500 for Family Coverage

Covered Expenses

• Semi-private hospital room & board
• Private Nursing
• Prescription drugs, sera (eg. Insulin), vaccines (obtained only by a written prescription)
• Ambulance (including air)
• Services of licensed practitioners, including chiropractor, podiatrist, osteopath, masseur, psychologist and speech therapist, to a maximum of $25 per visit per practitioner, and subject to an overall maximum of $25,000.

Travel Medical

If you and/or your covered dependents require medical or surgical treatment outside of your own province or residence, this plan will pay for the following covered expenses, to a maximum of $1,000,000.

Covered Expenses

• Semi-private hospital room & board (to a maximum duration of 12 months)
• Hospital charges for out-patient services
• Private Nurse (prescribed by a physician) to a maximum of $5,000 per accident or sickness
• Prescription drugs, sera (eg. Insulin) and vaccines (available only by written prescription)
• Charges for Physiotherapy to a maximum of $1,000 per accident or sickness
• Ambulance (including air) to a maximum of $1,000 per accident or sickness
• Expenses for blood plasma, whole blood or oxygen, x-rays and laboratory examinations
• Rental or purchase of casts, cervical collars, crutches, trusses, splints and braces
• Artificial limbs, eyes or other prosthetic appliances to a maximum of $2,000 per calendar year
• Expenses for medical care and surgical procedures performed by a physician
• Services of licensed practitioners, including chiropractor, podiatrist, osteopath, masseur, psychologist and speech therapist, to a maximum of $25 per visit per practitioner, and subject to an overall maximum of $25,000.
• Emergency dental treatment to a maximum of $2,000.
• Repatriation to a maximum of $3,000
• Emergency Air Transportation (including stretcher accommodation and an attendant
• Family transportation and accommodation
• Return or vehicle
• Access to International SOS Assistance program
• Anesthesia

Who Qualifies?
What's Covered?
Frequently Asked Questions
In Province Medical /Travel Medical Coverage
 

Fill out the on-line application form and someone will contact you to guide you through the process.

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