Who is Eligible for a PHSP?
How do you know if you qualify to enroll in Private Health Services Plan?
Through Cost Efficient Benefit Plan, you qualify for the Private Health Services Plan (PHSP) if you own an incorporated business.
The size of the business does not matter. There may be one or numerous employees.
A sole proprietor must have at least one arm's-length employee to qualify to enter into a PHSP, which is available through a third party administrator, such as Cost Efficient Benefit Plan.
Incorporated Business
If you have an incorporated business or a partnership you qualify. You could be a single one-person business or have numerous employees.
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Companies with existing benefit plans can use the (PHSP) as a health spending account to lower your existing premiums and add coverage that is not usually covered by the regular plan.
Sole Proprietorship
As a sole proprietor with at least one arm's-length employee, all your family’s health and dental expenses are covered under the PHSP. It is the ideal plan for your business.
The most common definition of a medical expense is a payment made to a licensed medical practitioner qualified to practice under the provincial laws of the place where the expenses were incurred. Medical expenses eligible to be paid out of the PHSP are expenses which would otherwise qualify as medical expenses within section 118.2(2) of the Income Tax Act.