Tax Free Health Private Health Service Plans FAQ

What is the Qualification criteria?
The criteria is straightforward and simple. You must own an incorporated business.  The size of the business is not a criteria. You can be the sole shareholder or have numerous employees.

Are there any Premium Costs?
No.  There are no premium costs to the program.  The SIG Private Health Service Plan operates by administering the reimbursement of medical expenses between the employer and the employee.  There is a 10% administrative fee for this service.  There is also a one time enrollment fee the employer must pay to participate in the program.

Can the Private Health Service Plan (P.H.S.P) be used in conjunction with the spousal plan?
In most cases, the PHSP can be used in conjunction with a spousal plan to offset costs of un-recovered items and cover a broader range of services.

What is Canada Revenue Agency's (CRA's) opinion on PHSP's?
A complete copy of the "IT85R2 Health & Welfare Trusts" can be obtained through Tax Free Health's offices.

What is the maximum allowable deduction annually?
As an incorporated company, there are no annual limits to deductions.  If limits are to be set, they are done so by the employer and the employees.

Who in my family does the PHSP cover?
Anyone in your immediate family can benefit from the use of the funds in the PHSP.  The only limitation is the limit set when the employee opts into the plan.  For example, if the employee benefit totals $5000 per year, then any one member of the family may use that benefit in it's entirety.

Where are the funds in trust held?
Funds in trust are held in a trust account and are withdrawn tax-free as required to cover health care expenses. They cannot be withdrawn for any other reasons with the exception of the employee or employer canceling or opting out of the program.

Who keeps track of my claims and expenses?
You are responsible for submitting all claims to Strategic Investment Group. SIG will then administrate the program and provide an annual statement of the money received and the claims paid.

What if an employee leaves the company?
Should an employee leave the company, their participation in the PHSP will be terminated at the employer's request.  Any remaining unused premiums will be reimbursed to the employee.