Are you PHSP-ing?

Fiona Law looked at a raft of traditional group insurance plans while looking to provide health and dental benefits for her staff at Calgary-based CompuTouch.

Her business, which uses technology to support interactive meetings and conferences, has just three full-time employees. So she wanted something that was easy to set up and understand, a plan that would cover a wide range of medical expenses and offered the firm certainty of costs.

What she ended up choosing was not an insurance plan at all, but a private health services plan (PHSP).

“This was an alternative way of providing a benefit that was very straightforward and very transparent,” she says. “It’s a good compromise with a minimum of hassle.”

Replies to this Post

  1. Amir says:

    I’ve always known about the METC (Medical Expense Tax Credit) and how one can deduct expenses such as dental but one must reach and pass a certain threshold (i think its 3% of net income or $2,000) before you can get the credit.

    However the other lousy thing about the METC is that it is a credit against the lowest tax bracket (17%?). Doesnt seem worth it if you have a choice to get PHSP.

  2. Weston Bunfield says:

    I wish something like tihs existed for non-business people because i really cant afford private health insurance.

  3. Keshawn J says:

    Based on my calculations it would see crazy to use the long standing medical expense tax credit if you have the option of joining a P.H.S.P.

    Of course there is nothing stopping you of combining both but if your business is going to be in operation for a while its best to avoid the tax credit on your personal return and just carry forward expenses and apply them each year as a business expense.

  4. Lonnie S says:

    I haven’t read too into it but i wonder if it is retroactive and i can get coverage on my childs braces that started back in February. This could be very interesting since i own a carpet business.

  5. Yusuf Clem says:

    As a small business owner i have been a proud lover of phsp and have my spouse and children under it and we’ve saved tremendously with it. Thanks for sharing.

  6. Sammi M says:

    With something like this i see no value in private insurance. Unless like the article says you have a really high expense. Which i can debate since health plans have deductibles and set limits per year that are far lower than you can get with phsps.

  7. Bobbi H says:

    So this is only for businesses (and their employees). I assume then the owner is considered an employee and is eligible?

  8. Yogi Reed says:

    How does PHSP handle large medical expenses? I understand it can be broken up into multiple years so you dont go over your set limit per year but i have yet to read anywhere on how this is managed.

  9. Corbin H. says:

    I’ve heard of providers such as this. Yea it seems like a good idea. You can also start your own called a self-administered PHSP if you want to cut out the middle man.

  10. Ray says:

    Never heard of this before. Canada should make this more aware to people. It is a great idea for little companies.

  11. Hakeem Langmade says:

    Time for me to start my own little business 🙂

  12. Montel Heath says:

    Ok so what i’ve read a sole proprietor can save up to $1500 on gross income (tax deductible) per year.

    That’s pretty good compared.

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