I thought you also needed to purchase insurance to have a PHSP. How come Brock Health Administration doesn sell insurance?
If reading section 248(1) of the Income Tax Act in a casual way, it would seem insurance is required to qualify as a PHSP. However, that confusion became apparent to Canada Revenue Agency and that is why the Interpretation Bulletin IT-339R2 was released in August 1989 to address the matter. This Interpretation Bulletin is entitled “Meaning of private health services plan” specifically to clear up this confusion. Section 3 of this document clearly states a PHSP is a “plan in the nature of insurance” and it goes on to enumerate 5 sub points of which the Canada Revenue Agency believes describe that “nature”. Furthermore, Section 6 specifically illustrates how the “cost plus” model of a PHSP should function. You will find the bulk of the PHSP service providers in Canada, including Brock Health Administration operate under this exact “cost plus” model. The “Why Choose Brock” Page will point you to all the major PHSP providers where you can compare and confirm this fact.
