A Private Health Services Plan (PHSP) is for any sized business to provide superior employee benefits through a health and dental plan with a modest flat 5% fee. The owners and their employees receive comprehensive medical coverage while enjoying substantial tax savings. A PHSP is a low-cost alternative to health and dental coverage under a monthly-premium based Insured Plan.
Main Distinguishing Features of a PHSP
- Incorporated businesses, including contractors, consultants, tradesmen, and professional corporations all qualify for medical benefits under a PHSP.
- A PHSP can also be used by sole proprietors for self employed benefits
- There are no premiums; the business only pays if a claim is submitted
- The business funds the entire cost of the PHSP health and dental plan and claims a corresponding 100% tax deduction.
- Meanwhile, Canada Revenue Agency (CRA) allows reimbursements to employees under a PHSP as non-taxable employee benefits (except in Quebec).
- The cost is a fixed percentage of the PHSP claim so you know exactly how much you are paying for your medical benefits.
- The Covered Services eligible under a PHSP are more comprehensive than most Insured Plans. They include almost every health and dental plan service provided by registered health care practitioners. See What is Covered for details.
For more information, please select what size of company you are.
The Benefits of a PHSP for the One Person Business
This category of businesses would include sole proprietors, self-employed, and contractors, as well as incorporated consultants, tradesmen, and professional corporations. This size of business enjoys the greatest tax advantage with a PHSP. Since your family will incur these health and dental expenses regardless, you will now enjoy a 100% tax deduction for your family medical benefits. Every established business in this category should have a PHSP for self-employed benefits.
For the average family in Canada, the annual medical expenses can easily amount to $2000. A typical, healthy, family may only need to have a visit to the dentist for each family member, a pair of glasses, and a few prescription drugs to reach that amount. Depending on your personal tax rate and province of residence, your savings with a Brock Health Administration Private Health Services Plan (PHSP) can range from $350 to $850.
- Make your family health and dental expenses 100% deductible.
- Reduce your business and personal taxes.
- Get comprehensive medical coverage of all the routine expenses with few limits.
- Pay less than you do today in premiums for an insured health and dental coverage.
- Supplement plans held by a spouse who is employed outside your business.
The Benefits of a PHSP for the Small Business
These businesses would include sole proprietorships or corporations that have employees who are non-family members. Now, your health and dental coverage is a cost right off the bottom line, so you are looking at cost versus value. You want to minimize your health and dental plan liability and still maximize the net staffing results for your employee benefits.
- The comprehensive medical coverage of a health and dental plan through a PHSP are a far superior retention incentive over Insured Plans for employee benefits
- Freeze your medical benefits costs permanently at a dollar amount your business can afford.
- You can budget and forecast with certainty because your health and dental coverage costs will never change until you want to increase or decrease them.
- If you prefer the catastrophic medical benefits offered by Insured Plans, a PHSP can cover all those little ineligible expenses under your Insured Plan. Your employees will love you for it.
The Benefits of a PHSP for the Medium Sized Business
This category of businesses would include those who have now grown to a dozen or more employees. While still enjoying the tax advantages and employee benefits of the previous categories, you could now be faced with privacy concerns and the workload of your administrative staff responsible for submission of health and dental plan claims. Brock Health can help with no additional charges. We offer several options for prepaid plans to handle the additional administration for the same low fee.
- Your employees can submit claims directly to Brock Health for reimbursement.
- Funding of the plan can be tailored to fit your cash flow requirements.
- Reporting can be as frequent as you need.
- Your PHSP can operate as a low cost top-up to cover gaps in the medical coverage under any other plans you might carry.
Brock Health Administration offers one of the lowest cost PHSP health and dental plans in Canada. We are based in Alberta and we are assisting over 3000 customers in every province and territory from Newfoundland & Labrador to British Columbia. If you own a business, regardless of whether it is incorporated or not, you can start saving money now. Ask your accountant or HR advisor about a Private Health Services Plan (PHSP) and register today.