The good news is that there are no monthly premiums!
This is because the Smartin Benefits PHSP is not an insurance.
We believe you should "only pay for what you need" when you need it!
Absolutely not! Take a look at the example below and decide for yourself:
A Private Health Services Plan (PHSP) is a Canadian tax-free vehicle for financing the health care costs of employees. They were introduced in 1989 by Canada Revenue Agency (CRA) in their interpretation bulletin entitled IT-339R2. Today, they are one of the most popular forms of health spending accounts in the Canadian market.
No. Current or past health conditions do not affect your ability to enroll in the Smartin Benefits PHSP.
There are no age limits for employees, as long as the employee is still actively working for the company.
Also, as long as the employees are still working for the Company, the PHSP coverage extends to their spouse and immediate family members.
Yes, any Canadian corporate company can take advantage of the Smartin Benefits PHSP with the following exceptions:
There are different types of corporate names, and each name should consist of three parts or elements. These being the "distinctive", "descriptive" and lastly the "legal" elements. There are many legal elements some include "Ltd.", or "Inc." or "Corp."
For more detailed information about company types see this link.
The CRA lays out various criteria for a plan to qualify as a PHSP. One such rule is that the plan must be a "plan or contract of insurance". This has a very specific definition; there must be one party that indemnifies another party against loss in respect of an event, the happening of which is uncertain.
In an incorporated company, it is the corporation which indemnifies the employee or employees. Even if it is only a single-person company, the employee and the company are two different entities.
It is not possible for a Sole Proprietor to qualify under this rule, since a Sole Proprietor (wearing the hat of "business owner") cannot indemnify him or herself wearing the hat of employee; since they are legally the same person!
A sole proprietor (unincorporated company) can subscribe to a traditional monthly health benefits program, as there can then be a contract of indemnity or insurance between the sole proprietor and the insurer.
We are here to help you. Our team of professionals are standing by to answer any questions that you might have about the PHSP concept, the enrolment or claim processes. Our goal is to maximize your PHSP potential!