Private Health Services Plan

Whether you are a sole proprietor, small business, or incorporated company, with PHSP you can offer your employees a comprehensive, non-taxable medical benefits package — and deduct 100% of the resulting expenses from your business income.

Your company contracts with the PHSP administrator to pay tax-deductible expenses not covered by basic health and dental group insurance plans. Funded or non-funded plans can be accommodated. The reimbursement process is simple and painless:
  1. The covered plan member pays the medical expenses completely up-front.
  2. The member presents the original receipt(s) and claim form to the plan administrator who then submits it.
  3. The corporation is invoiced for the full amount of the expense, plus 10% administration fee, and applicable taxes.
  4. Once the corporation pays the invoice, the provider then reimburses the employee/plan member 100% of the expense.
Some different conditions apply to unincorporated and incorporated businesses. The following chart summarizes them.
Item Unincorporated Incorporated
Flat rate
% of income
Per family member

Item Unincorporated Incorporated
Expenses: deductible
Travel req’d.
Insurance cycle  Jan. 1-Dec. 31 (may be prorated) 365 days from anniversary of effective date

  • Expenses paid through a PHSP are 100% tax-deductible to the corporation.
  • Employees enjoy a tax-free benefit.
  • Out-of-pocket medical costs are turned into tax-deductible corporate expenses.
  • Provides additional coverage for employees.
Fees Taxes
$150.00 one-time setup fee 5% GST on 10% fee
10% administration fee on claims 8% PST on claim & administration fee (Ontario)
2% premium tax on claim & administration fee (Ontario)

Online Services

Do you have a question about life insurance? Ask away and I'll reply promptly.

    For security reasons, please contact us by phone when sharing any personal or confidential information. Emails are not considered a secure means of transmitting information.

    Your Name (required)

    Your Email (required)

    Your Question

    Important information for PHSP clients

    The 2010 Canadian federal budget affects the eligible conditions covered by the PHSP.

    Please see the 2010 Budget changes page for more information.


    Harris Pleet with David Grossman and Howard Kamin on KioskToronto
    Harris Pleet: Why Get Mortgage Insurance?
    Why Get Critical Care Insurance for Self-Employed Single Parents
    The Heart of Employee Investment Optimization
    Dumb Ways To Die
    Manulife: The Call
    Maddock Douglas Reverse Lottery
    Canada Protection Plan
    Canada Protection Plan


    Raymond L. Winer
    (416) 636-7500

    Ivan Yakovlev AMP
    (416) 721-4223

    Sukhi Dhillon Alberga
    (647) 545-9062

    Mia Morvai LLB
    (416) 500-5620

    Dee Paul
    Sales Representative – I Pro Realty

    I Pro Realty 
    276 Danforth M4K 1N6

    Andy Hall
    Associate Broker – Mitchell Sandham
    905-683-4549 ext 201
    13-467 Westney Road South
    Ajax, Ontario L1S 6V8