Private Health Services Plan

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A PHSP is a bank account established exclusively for the purpose of health care spending. They are a part of the family of health spending accounts in the world of group benefits in Canada.

A PHSP is an arrangement through which an employer can provide certain benefit programs to employees, as defined under the Canada Revenue Agency (CRA) guidelines. One or more employees may be covered under an PHSP.  A PHSP is a specific trust that satisfies certain requirements as set out in CRA guidelines.

These requirements are as follows:

  • The funds of the PHSP cannot revert back to the employer or be used for any purpose other than providing the health and welfare benefits for which the contributions are made;
  • The employer’s contributions to the fund must not exceed the amounts required to provide the benefits;
  • The payment made by the employer cannot be made on a voluntary or gratuitous basis. In other words, once the payment plan is established it cannot change during the policy year. The contributions must be enforceable by trustees should the employer decide not to make the payments required;
  • The trust is a legal arrangement between the employer, a third-party acting as the administrator and an independent trustee. The expenses to be paid out of the trust must qualify as medical expenses as defined by CRA (specifically subsection 118.2(2) of the Act).

Other Services

In addition to PHSPs (the ability to make your medical and dental expenses tax deductible if you are self employed), we also offer: Life Insurance; Disability Insurance; Group Insurance; and Self Insured Group Insurance (Life and disability with an insurance company, self insure the medical and dental).

We are also able to work with you other advisers to help with your Farm Succession Plan.