Holden Financial - FAQ - Frequently Asked Questions


Frequently Asked Questions

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What is a PHSP (Private Health Services Plan)?

Section 248(1) of the Income Tax Act defines a PHSP. It can also be referred to as a Health Spending Account or HSA. A PHSP is a tax efficient way for an employer to provide health and dental benefits to their employees. The employer is entitled to a deduction for the full amount of expenses paid out to the employee and the employee receives the full benefit tax-free.

For more detailed information on the structure of a PHSP, please visit Canada Revenue Agency website at www.cra-arc.gc.ca and search for IT Bulletin IT339R2 and IT470 paragraph 39 & 40.

How does the plan work?

There are three parts to every claims process:

  1. Pay for your medical costs with personal, after-tax dollars.
  2. Submit the receipts to your company. Your company will send Holden Financial a claim form and a company cheque for the amount of the receipts plus the administration fee and GST.
  3. Holden Financial will send the employee a cheque for 100% of the qualifying medical costs up to the specified annual limit.
Do I qualify?

All Incorporated Businesses and Limited Companies can enroll in Holden Financial’s PHSP.

How much will my premiums be?

Holden Financial charges a one-time setup fee at the start of the contract. We do not collect premiums each month. On each claim you will be charged an administration fee; a percentage of the total claim.

What services are covered?

The following are some of the Services covered under the Private Health Services Plan:

Blue Cross, Manulife Flexcare, and Travel Medical Insurance premiums. All services performed by a qualified Medical Practitioner, including; Chiropractic, Acupuncture, Massage, Psychologist, Speech Therapist. All Dental Services, including; Examinations, Oral surgery, Dentures, Extractions, Fillings, Gum Treatment, and Straightening Teeth. Hospital Services, Laboratory Services, Prescription Drugs, Medical Treatments, Apparatus and Materials Prescribed by a Medical Practitioner.

For more detailed information go the CRA website at www.cra-arc.gc.ca and search for Allowable Medical Expenses.


How do I set up a PHSP?

Please contact us for an application form. After you pay the initial set-up fee and sign the contract you can start submitting claims.

My spouse has a traditional benefit plan through his/her work, do I still need a PHSP?

A PHSP is an excellent supplement to any traditional benefit program. Any expenses that are not covered, deductibles or co-pay amounts that you pay out of pocket can be claimed the PHSP. Simply retain your Explanation of Benefits from the insurer as your original receipt. In these cases the PHSP is always the second payor as it is not considered an employee benefits plan.

Are Employer Contributions Deductible?

YES. All contributions to the program are a 100% deductible expense to the employer.

Are the Benefits Taxable to the Employee?

NO. Benefits received by employees are tax-free and will not be included in the employees earned income.

What Are the Exclusions In This Plan?

Generally Cosmetic Health and Dental Services, Alberta Health Care Premiums, and most Over-the-Counter medications (e.g. Advil, Cold FX, Vitamins) are not covered under the PHSP. For more detailed information go to the CRA website at www.cra-arc.gc.ca click Forms and Publications and do a search on IT Bulletin IT519R2 or search for Allowable Medical Expenses.