A healthcare benefit plan (offered by an insurance company) with a reasonable degree of coverage will cost approximately $85 for each single employee or as much as $150 for a married employee per month. If during the year the claims made by the employee are in excess of the premiums, the insurer will undoubtedly increase premiums the next year to establish a proper premium rate level, to make up some of the deficit and assure a profit for the year. Many small employers, while having a significant need for health and dental insurance, do not purchase healthcare benefits simply because of the price.

Without a Private Health Services Plan (PHSP) provided by MedicalTAX inc., a business owner
may have to withdraw taxable income from her company in order to pay the cost of health expenses for herself, her employees, and their families. MedicalTAX inc. saves business owners thousands of dollars in tax savings every year as a qualifying third party PHSP administrator.


:: Example ::
During the year an employee experiences $1,000 in health care expenses between her, her family and her dependants.


  Pre-Tax Earnings After-Tax Earnings
Earnings needed to be able to pay for
health care expenses: (32% tax bracket)
$1,471 $1,000

Conclusion: For the employee to be able to pay the medical bills totaling $1,000 she would have to make pre-tax earnings of $1,471.


Cost to employer = $1,080 (100% tax deduction)
Tax savings to employer @12% = $130
Overall cost to company = $950

$1,471 pre-tax health care bill will cost $950 after tax

Total Savings = $521

After tax cost to employer $950


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