Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
62% - Often

Private Health Services Plan

Synonyms:health spending account
Acronyms &
Relevant locations:Canada
Notes:Provides tax-deductible health and dental benefits in Canada.
Filed Under: financial-banking, insurance, taxation
Tags: business, employment, health, labour, taxes

Definition of private health services plan (PHSP)

private health services plan (PHSP)
1. A tax-deductible vehicle through which Canadian businesses can provide health and dental benefits for their employees. Benefits provided through a Private health services plan (PHSP) are tax deductible for the business and are non-taxable for the employee. PHSPs can be offered by both incorporated and non-incorporated businesses (including sole proprietorships), and benefits are available for employees, the families of employees, and owners (as long as the owner receives benefits in their capacity as an employee and not as a shareholder).

Related Terms and Acronyms:

  • fringe benefit   Employee compensation other than your wages, tips and salaries, such as health insurance, life insurance and pension plans. Usually referred to as a Bonus.
  • group health insurance plan   Health insurance that covers a large group of people, often as part as a employee benefit package.
  • Health and Welfare Trust (HWT)   A method for employers to offer their employees tax-free health benefits.
  • health insurance (HI)   Insurance that covers the costs of medical expenses for insured persons.
  • medical specialist   A doctor with training in a specific medical field.
  • private healthcare   Health services no provided by the government, often paid out of pocket.
  • stop loss insurance   A low premium, high deductible insurance policy with an upper limit on coverage.
  • two-tier healthcare   A situation where public healthcare is available to all people, but private healthcare can be purchased by those who want it.
  • universal healthcare   A system for providing healthcare free to patients at point of use.

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