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What is a Health and Welfare Trust or a Medical Trust?

A Health or medical trust works very differently than traditional group or individual health and dental insurance programs in that there are no ongoing premium payments required following setting up the trust.

A company enters into a contract with one of our suppliers for the indemnification of an employee’s health/dental benefits, whereby the company agrees to provide funding for these expense amounts and the applicable fees and taxes up to a limit the company sets in advance. The total amount paid by the company is 100% tax-deductible to the business and the employee receives a tax free benefit. So you wind up paying for your routine medical and dental expenses in pre-tax as opposed to post tax dollars.

Routine claims are reimbursed through the trust and there is low cost insurance available to provide for out of country travel medical expenses and provide financial security in the event of a high cost catastrophic claim in Canada.

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