What are the taxation rules governing the MediDirect® program?
• The MediDirect® program qualifies as a “cost-plus” Private Health Services Plan (“PHSP”). The funds paid to a PHSP by an employer are business expenses deductible against business income. The amounts are non-taxable benefits to the employees. The employer must have an obligation under the employment contract to reimburse the eligible medical expenses of its employees. This obligation can be implied by signing up with MediDirect® Inc.
