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Home  Private Health Services Plan Private Health Services Plans Facts

As a business owner you are likely to have routine health care and dental expenses (such as prescription drugs, eyeglasses, physiotherapy, massage therapy, chiropractic care and dental work like cleanings, fillings, crowns and orthodontics).

There are two ways to maximize the deductibility of these expenses:

1. Keep your medical, health and dental receipts and claim them on your personal income tax return under the Medical Expense Tax Credit.

2. Claim routine medical, health and dental expenses through a Private Health Services Plan (PHSP) which allows them to be 100% deductible as a business expense.

At BFP we can help you to decide the best way to manage your medical, health and dental expenses. Canada Revenue Agency recognizes medical trusts (or Private Health Services Plans) as a way for business owners to pay for those expenses. We can also assist you with setting up and administering a PHSP, if a PHSP is to your benefit. Click here to get a full list and description of what expenses CRA considers eligible.

The Process is Simple

First, go to our calculator and fill in the blanks for your personal situation to make sure that a BFP PHSP is right for you. If it does look like it will work for you, contact a BFP PHSP specialist . The PHSP specialist will call you to arrange a meeting on the phone or in person to go over the specifics of your Company, making sure that you are going to be maximizing the trust while abiding by Canada Revenue Agency's rules. The application itself is simple, 2 pages long, and the policy will be emailed to you.


PHSP One Time Fees and Ongoing Costs

$0 up front fees. $0 on going PHSP maintenance fees.

There is usually a one-time fee to set up a PHSP, but with the BFP PHSP there are $0 fees up front. On-going there is no fee to maintain the account, the only fee you pay is a 10% processing fee on paid claims, and GST on that processing fee. You do not have to maintain a certain balance in the PHSP account; you can choose to pay at the same time as you submit your claims if you like. Think of it as a pay as you go account. If you never use the trust it won't cost you anything.

Contact one of our BFP specialists for a complementary PHSP consultation or visit our easy to use BFP PHSP Calculator  to compare your Medical Expense Tax Credit savings against the savings you may have from a BFP PHSP.

Accountants Recommend Medical Trusts

"A medical trust is a must for any closely held corporation and for those with many employees; they provide a fabulous compensation choice due to the efficient, tax effective option that is provided. They are truly too good to be true – do not pass them up!" Gabrielle M. Loren, CPA, CGA Partner, Loren, Nancke & Company Read More

Read our Medical Trust Blogs - click here

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