A PHSP is chosen by employers to provide a superior benefit for employees, and give control over the increasing cost of employee benefits.
A PHSP effectively gives each employee a health and dental expense account to use at the employee's discretion. The employer may divide employees into classes (e.g. executive, management, full-time, hourly, etc.) and have different annual dollar maximums for each class. You may even choose to not include all classes of employees in your plan. Please refer to the FAQ section for maximum annual benefit limits.
The following are example plans:
Promedent PHSP for Sole Proprietors
If you are the sole employee of your company, or have no employees (arm's length or non-arm's length), you will need to be incorporated before signing up.
By submitting an electronic claim form, 100% of your family's health care and dental expenses go from a personal expense to a business deduction. This claim costs $50 (or 1% of claim for claims totalling $5000+), plus GST/HST (as applicable by province), but saves you much more in tax.
Promedent PHSP for Businesses with Employees
As the employer, you have flexibility to establish benefit limits for classes of employees and for employees who are single or with a family.
You control the frequency of employee claims and hence the PHSP administration costs. For example, if you want employees to be able to claim more often than once at the end of the year, Promedent recommends that you designate specific time periods, such as having employees submit by June 30th and December 31st.
Promedent PHSP for Executive Top-up
A PHSP is an ideal top-up plan. For example, your insurance may not cover certain types of health care expenses or only cover part of the amount. If your business already has an Extended Health & Dental plan through an insurer and you do not want to make changes at this time, a PHSP gives you the ability to only improve the benefits package for certain classes of employees, such as the class to which you belong.