Many of the small business owners we’ve talked to know that they want to offer their employees health benefits, but they aren’t sure what’s the most affordable way to do so. One option that many Canadian business owners may not have considered is a PHSP.
PHSP stands for Private Health Services Plan, and it’s a Canada Revenue Agency (CRA) approved alternative to traditional health insurance. You can think of it as a special account which is used exclusively to pay for healthcare services. Once set up by your business, it can be used by you, your family, and your employees.
One of the best things about a PHSP is it offers business owners maximum control over how much money each employee spends on health benefits while also maximizing the amount of flexibility your employees benefit from. Another perk for employers is their employees’ medical expenses becoming a deductible business expense. This means that your business benefits from any medical expenses being fully tax deductible, while your employees and family have access to more flexible and comprehensive benefits. PHSPs often include benefits not covered in traditional plans, and they eliminate expensive deductibles and high premiums. Basically, as long as your employee doesn’t try to go over their maximum benefit budget, they can distribute their benefits where and how they want.
Do you Qualify?
PHSPs are a great alternative to traditional health plans, but unfortunately they aren’t available to individuals looking for a family plan. In order to qualify for a PHSP, you’ll need to own a business — whether you’re the CEO of a large corporation or a sole proprietary, you’ll also need to have health expenses to pay for, and your business must be paying income tax.
Are you interested in learning more about Private Health Services Plans? At Health Risk, we want to offer Canadians as many options as possible, so they can decide which health insurance solution fits their life and their priorities best. If you own a business and are interested in how a PHSP can help you, contact the professionals at Health Risk today! We’d be happy to answer your questions and provide you with the expert insight you need to make an informed decision.