• What is the definition of a Private Health Services Plan (PHSP)?
    The Canadian Income Tax Act allows businesses to reimburse an employee for reasonable health care expenses which are tax-deductible expense to the business and are non-taxable benefits to the employee.
    This is significant in that the employee does not pay after-tax dollars for health care expenses. The employer pays for the employee's health care expenses and deducts this expense as an operating cost of the business AND the employee receives this benefit without any tax burden.
  • What expenses are deductible?
    CCRA (Canada Customs Revenue Agency) allows all expenses which normally qualify as health care expenses under the proper provisions of the Income Tax Act of Canada.
    Please see our full list of eligible expenses
  • Are there any GST costs?
    GST is payable on the MedicalTAX inc. setup fee and administration fee only. GST does not apply to the health care expenses.
  • If I have health care expenses prior to registering with MedicalTAX inc. can they be included?
    No. health care expenses incurred prior to registering with MedicalTAX inc. are not deductible. Health care expenses incurred after the registration date with MedicalTAX inc. are deductible for tax purposes by the employer and are a non-taxable benefit to the employee.
  • What if I have current health issues or am in poor health?
    Unlike many insurance based programs, with MedicalTAX inc. there are no health qualifications. An employee can qualify for MedicalTAX inc.'s Private Health Services Plan despite the quality of his or her health and/or ongoing medical needs.
  • Are individuals eligible for a tax credit for health care expenses on their personal tax return?
    Health care expenses over a certain threshold entitle you to a tax credit. The threshold is determined by your net income. If your net income exceeds $58,500, the first $1,755 is non-deductible in determining your tax credit. Qualifying expenses will give rise to a 16% federal tax credit.


    John's net income is $50,000
    Family expenditures on qualifying
    health care expenses are $2,000
    health care expenditures amount to $1,500 (50,000 x 3%)
    Federal tax credit equals $80 (16% of $500)

    MedicalTAX inc. Private Health Services Plan Example:
    John's net income stays at $50,000
    John receives from his employer $2,000 tax free dollars
    John's employer has expenses for $2,160 (GST $11.20)
    MedicalTAX inc. receives an administration fee of $160 (GST $11.20)
  • Are an employee's dependents included?
    The employee's spouse (or partner of 12 months or greater) and dependent children will be included. A dependent child of 18 years of age and less than 25 years of age must be in full time attendance at a post-secondary institution or on holiday from a qualifying school.
  • What if the employee or her dependents have a current medical plan?
    MedicalTAX inc.'s Private Health Services Plan can be used as a complete comprehensive medical plan or can be used as a top-up plan to cover expenses that are not covered under a standard health care plan.
  • What are the annual and monthly premiums?
    MedicalTAX inc.'s Private Health Services Plan has absolutely NO annual or monthly premiums.
    The employer pays an 8% administration fee upon usage only.
  • After MedicalTAX inc. has received my claim, how soon can I expect to receive my tax-free benefit payment?
    Our objective is to have a reimbursement cheque sent to the employee no later than 10 business days from the time MedicalTAX inc. receives the claim and deposits the employer's cheque.
  • How does a Private Health Services Plan compare to an Industry Insurance Plan?
    An industry insurance plan requires monthly premiums and a substantial administrative cost to determine if coverage is going to be done and what percentage of coverage the company is prepared to cover, based on its rules.
    MedicalTAX inc.'s Private Health Services Plan (set-up and administration) does not have any premiums and is a pay-as-you-use system with an 8% administration fee due to minimal overhead and administration.
    We believe this is a far more cost-effective solution; to pay a minor administrative fee rather than the ongoing premiums that pay for ongoing commissions and substantial administrative costs.
  • Does a PHSP make economic sense?
    The employer saves $$ if he was covering health care costs and expenses 100% of the costs paid.
    The employee gets one of the very few tax free benefits allotted to him under the tax act.
    Revenue Canada (CCRA) contributes to the health care coverage for those that need and incur health care costs under MedicalTAX inc.'s PHSP program. There are very few opportunities to have a win/win situation like this one in the tax act

::| Calgary, Alberta | | p: 403.228-7825 | | medical@thefundingnetwork.ca::