What is a Private Health Spending Plan (PHSP)?
It is a Canada Revenue Agency approved private health care plan that allows self-employed individuals, limited partnerships and corporations to self-insure and deduct their health and dental expenses in a tax-effective and cost-efficient manner. Contributions made by an employer to or under a private health services plan (or Health Spending Account or Private Health Spending Plan) on behalf of an employee are excluded from the employee’s income. The amounts so paid must be for one or more of: (a) the employee (b) the employee’s spouse and (c) any member of the employee’s household with whom the employee is connected by blood relationship, marriage or adoption. A private health spending plan (PHSP or HSA) takes advantage of Section 248(1) of the Income Tax Act. The CustomCare PHSP is administered by CustomCare Inc.
