Private Health Services Plan (PHSP)

A Private Health Services Plan (PHSP) can be highly advantageous for self-employed, partnerships and corporate farm operations. By processing your health expenses through a PHSP, farm operations can deduct 100% of eligible medical expenses while the owners and employees receive full reimbursement of these expenses as a 100% non-taxable benefit. At a 35% personal tax bracket, this provides $400 in savings on $1,000 of health expenses.

Features:

• If you have employees, different maximums can be established for each group (e.g. owners, managers, employees, etc.).

• The benefit maximums range from $1,500 per adult and $750 per child for a self-employed operation with no employees, to $15,000 per participant for corporations.

• There is a preferred one-time set-up fee of $250 for up to 5 employees, and a per-employee fee of $22.50 for each additional employee added. After the one-time set-up fee, there is no on going annual fee, so in years that you do not have health expenses or pay tax, there are no charges assessed. The account simply remains open to operate when needed. 

• Claims may be submitted as they are incurred, rather than as a single year-end claim. There is no per-cheque fee; however, there is a 10% administration charge on each claim submitted. 

• Participants also have the option to make claims electronically to reduce the need for paper.
  

• All dental, including cosmetic procedures.

• All vision (examinations, glasses, contacts, laser eye surgery etc.).

• All prescription drugs, including lifestyle drugs. 

• All medical practitioner services (e.g. chiropractor, massage (RMT) or physiotherapy). 

• Health assistance supplies, devices and equipment. 

• Health programs (e.g. home care, addiction treatments, nutritional counseling). 

• Modifications made to a home, such as wheelchair access. 

• Medical expenses for financially dependent family members. 

• Transportation, meals and accommodations for medical appointments and services. 

• For more information view a list of medical expenses.