A good way to offer coverage to a smaller group, instead of the traditional extended health and dental benefits, is with a Private Health Spending Plan (PHSP) or HSP (Health Spending Plan).  It is a CRA approved plan that allows incorporated companies to pay for health and dental expenses with pre-tax dollars. There is no medical underwriting, no age restriction, and no insurance premiums to pay.  The benefits are tax-free to the employees. An incorporated company can use a PHSP instead of a traditional insured extended health and dental benefits by providing all employees with a spending allowance instead.   You design the plan in accordance with the company’s budget, the company’s philosophy, the company’s need to compete for and retain qualified employees.   This is an opportunity to offer a type of “flex” benefit plan to employees. How does an HSP work? You set a contribution limit on behalf of your Employee(s) for their Health Spending Plan. These available funds may be used for medical expenses incurred. It is a non-taxable benefit for your Employee and a 100% business deduction for the Company. Enabling the small business owner to deduct health care costs easily, efficiently and cost effectively. What types of expenses are eligible? Under a PHSP or HSP there is no restriction to usage as many insurance programs do. Below is a sample of allowable expenses.

• Premiums for health plans and travel insurance
• All dental services (including orthodontics, implants, veneering and oral surgery)
• All optical services (including frames, lenses,contact lenses & solution, laser eye surgery)
• CT scans, MRI’s, etc.
• All paramedical services (including chiropractic, massage, physiotherapy, psychiatric)
• All prescription medications
• Services provided by a qualified medical practitioner

Contact Us for more information!