Are you paying for healthcare with after-tax dollars?

Explore a tax-deductible way to fund your medical and dental expenses through your business and receive them tax-free.

Canadian public healthcare covers many catastrophic expenses but leaves gaps which even costly private insurance won't fill. A Private Health Services Plan (PHSP) offers a tax-effective way to pay for eligible routine medical expenses without the ongoing costs and annoying restrictions of conventional insurance. Your business pays for the claims and administration — all tax-deductible. You and your family receive the benefits — all tax-free. Ditto for your employees.

A PHSP often has additional advantages:

  • no medical tests to qualify
  • no ongoing charges (just an administration charge when you have a claim)

Does The Choice Of PHSP Administrator Matter?

If you explore online, you'll find numerous choices for a PHSP Administrator. Some look like they're run from home. Some look like ghost sites (look at the copyright year). Some still aren't optimized for mobile devices. Some look overly restrictive (to simply their claims adjudication) and others overly generous (which may attract CRA scrutiny). Some take weeks to reply. Some haven't invested in YouTube videos, which suggests they may be be cutting corners elsewhere too …

The ideal PHSP Administrator delivers

  • quick, easy and fair claims adjudication
  • excellent service (live chat, phone, email)
  • extras such as protection against catastrophic expenses

After careful analysis, Taxevity only recommends Benefits My Way from CustomCare. That's the plan described below.

Why Get A PHSP?

Who Qualifies For A PHSP?

You generally qualify if you are:

  • an incorporated professional (e.g., accountant, doctor, lawyer)
  • the owner of a small business (a Canadian-Controlled Private Corporation (CCPC))
  • a sole proprietor with arm's length employees

How Does A PHSP Work?

The process is simple and quick:

  1. You: pay for the eligible product or service (e.g., $1,000) and submit your receipt to your employer.
  2. Employer: submit the following to the PHSP Administrator:
    1. the receipt and tax-deductible payment for
      1. the amount of the claim ($1,000)
      2. an administration charge of 10% of the claim amount plus HST ($100 + $13 = $113)
  3. You: Receive a non-taxable reimbursement directly in your bank account from the PHSP Administrator without any deductions, deductibles or cost sharing (e.g., $1,000)

Unlike conventional medical insurance, your health doesn't affect your coverage.

What's Covered?

A PHSP covers the same expenses as the Medical Expense Tax Credit (see partial list from CRA) when required by an authorized medical practitioner (see partial list from CRA). The details get complicated and there is some interpretation. That's where the PHSP Administrator helps.

What's Excluded?

CRA lists expenses which do not qualify. There is ambiguity, which is why the choice of PHSP Administrator matters.

What's The Cost?

Benefits My Way from CustomCare charges a one-time setup fee of $295 plus HST (which is deductible). When a claim is submitted, there's an administration charge of 10% plus HST. Unlike some plans, there are no ongoing fees.

The Big Risks

A PHSP works well for routine medical expenses. Conventional medical and dental insurance generally protects against surprises (subject to exclusions, deductibles, co-payments and caps). Imagine a combination of a PHSP and insurance

Benefits My Way lets you add protection for

How Do I Apply?

You can apply for your Benefits My Way PHSP online and get approved in minutes.

To find out more, contact us.