Private Health Services Plans

What is a Private Health Services Plan?

A Private Health Services Plan (PHSP) is a Canada Revenue Agency (CRA) Approved alternative to Group Health Insurance that allows a business to cover the healthcare costs of its Employees (including shareholders) in a tax efficient manner.

Many businesses don’t realize there are options beyond that traditional, Insured Group Insurance Plan.

With a PHSP, the employee has a vast, expansive list of eligible covered costs, for which they receive tax free reimbursement from the plan. When these costs are funded by the Employer, or Sponsor, the Plan Sponsor receives full tax deduction for the full cost.

Benefits of a PHSP?

As medical technologies and treatments expand, and healthcare costs increase, traditional group insurance is struggling to keep up; both in terms of what to cover, and how to contain costs. There is a constant tension between plan inclusion and cost containment. Year over year, costs in a traditional plan will continue to increase, presenting the business with a trend they may not appreciate. With a PHSP, nearly all medical expenses, drugs and treatments are covered, making it simple and straightforward for everyone involved and the cost is consistent from one year to the next. With a PHSP you set an annual coverage limit for each employee class, and the costs for the year will be capped accordingly. Here are some additional advantages of Implementing a PHSP

The list of what’s approved under a PHSP is simply unbeatable! Fertility treatments, all dental, all drugs, - contact us for the complete list.

No year over year increases in costs or fees, unless you choose to expand coverage to your employees

No costs if you don’t make any claims

If your claims are less than your fundings, the company owns the surplus, and it carries forward

Cost savings in comparison relative to Insured Health & Dental Plans

Set up classes within the company, with different limits for each class

No Deductibles, no co-insurance; 100% of any eligible expense is covered until the Employee reaches their coverage limit.

Set up is straightforward and takes very little time

All Plan spending is confidential. The Employer receives reports on usage, with no information disclosed on what types of services are being claimed.

How Does a PHSP Work

A plan can either be pre-funded or funded in advance. Either way, the essence of the plan is straightforward;

The Employee incurs an expenses, say for example $200 at the Dentist

The Employee submits the claim to Reid Benefits (text claim line)

If the claim is approved, the Employee is reimbursed for 100% of the cost

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