PRIVATE HEALTH SERVICES PLANS

The Benefits of Private Health Services Plans

 

Corporate-sponsored health plans like Qube’s Private Health Services Plans (PHSPs) protect your employees from the expense of drugs, dental, vision and other health care services. Your business can count PHSPs as a deductible expense and they are a non-taxable benefit for your employees. And you only pay for Qube’s plan once—no paying endless fees.

Cost-Effective and Straightforward

Provide the coverage your employees need without the premiums or fees charged by insurance companies or third-party administrators.

We can help you set up a tax-compliant PHSP, where a one-time, flat fee gets you a comprehensive Plan Kit with all the necessary training needed to self-administer a corporate health plan.

With PHSPs, employers can offer everything allowed by Canada Revenue Agency. Employees can access a wide range of health care products and services, including:

      • dental work
      • pharmaceuticals
      • massage
      • chiropractic care
      • acupuncture
      • physiotherapy
      • eyeglasses

Employees are not taxed for the health care they receive—an important point considering tax rates can reach 50% in many Canadian provinces!

No Health Care

A graphic showing the expense of health care without Private Health Services Plans. An arrow shows $4,000 transferring from a corporation an employee and $2,000 going from the employee to a health service.

With Private Health Services Plans

A graphic showing the saved money when a corporation provides health care with Private Health Services Plans. An arrow goes from the corporation, bypasses the employee, and puts $2,000 directly into a health service.

To take advantage of PHSPs, owner-managers must actively engage as an employee of the company and the benefits received must be reasonable. Due to CRA guidelines, you must follow insurance principles and maintain proper documentation.

No Ongoing Fees

We charge a one-time fee based on the number of staff members who will be eligible for the program at the time of plan set-up. Fees start at $750 +GST for companies with 1-2 employees. There are no ongoing admin fees or annual filing fees. We do not charge for our plan review at the end of your first plan year.

PHSP Kits

 

8 Ways We Make Self-Administration Simple

We provide planning expertise that will assist you in setting up a compliant and easy-to-use plan. You will receive a kit containing a USB loaded with CRA weblinks, pre-formulated claim ledgers, and a training video. Along with our kits, you receive:

1. An arrangement of a health plan that includes terms and conditions relevant to your situation

2. Assistance in the enrolment and bookkeeping with relevant government programs

3. A training session for your bookkeeper to review the program and to orient self-administration

4. Phone support for the year following the establishment of the plan to assist you in plan management

5. A plan review after the first plan year to see how the administration is being done and to offer advice if required

6. Simple forms for you to use to administer the plan

7. Sample employee communication material to assist you in explaining the details to eligible employees

8. Tax research on the PHSP to help you evaluate your tax position

A photo of an embossed leather binder, one of the things you will receive with your PHSP.

Ready to start the process of self-administering a health plan?

Frequently Asked Questions

DO I NEED AN OUTSIDE PARTY TO ADMINISTER A PHSP?
No, CRA specifically states that for corporations, PHSPs may be operated without the involvement of a third-party administrator.
WHO IS ELIGIBLE TO PARTICIPATE?

Anyone who is an employee of the company. The employer determines the level of participation: setting up categories for participation and establishing respective annual amounts available for coverage.

CAN THE ANNUAL LIMIT BE CHANGED?
Yes, the annual limit may be changed at any time, but a change will require official documentation of this amendment. Changes should not be made arbitrarily.
ARE AN EMPLOYEE’S FAMILY MEMBERS COVERED?

Yes, all members of an eligible employee’s household are included for coverage.

WHAT KIND OF EXPENSES ARE COVERED?

Anything that CRA deems eligible as a medical expense will be eligible through the PHSP. Dental, Optical, Pharmaceutical, Paramedical, e.g., physiotherapy, chiropractor, acupuncture are covered. Cosmetic procedures (like teeth whitening, for example) would not be eligible.

CAN I HAVE BOTH COVERAGE THROUGH INSURANCE AND A PHSP?
Absolutely. You can pay premiums to an Insured Plan—like Blue Cross—and use your PHSP as a “piggy bank” to make up for any out-of- pocket medical expenses incurred. Furthermore, premiums to a medical insured plan are eligible for reimbursement through the PHSP as a medical expense.
ONCE I SET UP THE PLAN, WHAT HAPPENS WHEN AN EMPLOYEE GOES TO THE DRUGSTORE AND BUYS PRESCRIPTION Medication?

The employee will pay for their prescription, and then come back with an official receipt. Your company’s in-house administrator will ensure that the claim is eligible and then reimburse the employee for their prescription, tax-free. The company can claim a corporate deduction for this reimbursement amount as an operating expense.

Looking for our PHSP training video?

HEALTH PLANS SHOULD BE SIMPLE & COST-EFFICIENT

Let’s talk about what a PHSP could mean for your business.