Promedent Private Health Services Plan (PHSP)
Promedent PHSP was designed to provide the most economical, easy to manage, Private Health Services Plan for small and medium sized businesses.
What is a PHSP?
Private Health Services Plans (PHSP) are similar to health and welfare trusts and are governed by the Income Tax Act. They allow a business to pay for the health care expenses of employees and their families as a tax free benefit. A PHSP is a cost effective alternative to a traditional insurance plan.
How does a PHSP work?
Using a PHSP is simple. You and your employees (including family members) pay for medical and dental expenses as they normally would and then, once or twice a year, your business pays the PHSP administrator (Promedent) the amount to cover these expenses plus an administration fee. The administrator then reimburses this amount to the employee. This reimbursement is a tax free benefit for the employee and a tax deductible expense for the business.
Benefits of a PHSP
- Flexibility - a wide range of health care expenses are covered under a PHSP and there are no deductibles or other limitations such as maximum annual amount or number of visits per year. The employer sets the funding limit and the employee decides how this money will be spent.
- Cost Certainty - employers know upfront how much their benefit costs will be. There are no insurance premiums to worry about.
- Eligibility - all employees are eligible regardless of pre-existing medical conditions. Pre-existing medical conditions do not affect the cost of a PHSP.
- Control - the employer can set different limits for each employee and adjust those limits as needed.
PHSP Eligible Expenses
A wide range of health care services are eligible for coverage under a PHSP. Most professional services from chiropractors, dentists, dental hygienists, dietician, gynaecologist, naturopath, optometrist, psychiatrist, registered nurse, etc. are eligible. The cost of many laboratory tests and prescription medications are also eligible. For a full list of eligible expenses, go to our PHSP Eligible Expenses page.
For information on how to enrol, visit our How to Enrol page.