For small businesses with a team
Health and dental benefits for your team, without the monthly premiums.
Group insurance charges you every month whether anyone claims or not. A Private Health Services Plan works the other way round. You set a yearly limit for each employee, and the company pays only for the dental, glasses, physio and prescriptions they actually claim, plus our fee. It is deductible to the company and tax-free to your team.
- Reviewed by people, not an algorithm
- Your data is hosted in Canada
- 2FA on every login
- Administering PHSPs since 2016
Premiums whether anyone claims or not
A group plan bills you every month and reprices every year. With a PHSP there is no premium. The company pays the claims that come in, plus a 10% fee.
You decide the limit
Set each employee's yearly limit, up to $15,000. That limit is the most the company can pay for them in the year, so the cost has a ceiling you chose.
A benefit people notice
Dental, glasses and physio paid tax-free is worth more to your team than the same money as a raise, and it helps you hire and keep good people.
A worked example
An eight-person firm where each employee's family claims about $1,500 a year
$12,000 a year across the team on dental, glasses, physio and prescriptions. The employees' marginal rate is 30%.
Paid as a raise
$17,143
in extra salary, so your people have $12,000 left after income tax to pay the same bills themselves.
Paid through the plan
$13,200
the claims plus our 10% fee ($1,200). The GST/HST on the fee comes back as an input tax credit. Your team receives $12,000 tax-free.
Less, every year
$3,943
for the same care. No premiums on top: in a year nobody claims, the plan costs nothing.
Both a raise and the plan are deductible to the company, so the corporate rate does not change the comparison. The raise would also carry the employer's CPP and EI, which the example leaves out, so the real gap is wider. An illustration, not tax advice; your team's incomes, province and actual claims change the exact figures.
Your numbers
You're on the plan too
The same plan covers your own family. Three quick questions. Nothing you enter is stored.
Dental, glasses, prescriptions, orthodontics, physiotherapy, and more, for your whole family.
$5,000
2. How much tax do you pay on your last dollar earned?
Your “marginal rate”: combined federal + provincial, approximate; it varies a little by province. Just pick the income closest to what you pay yourself, or use the slider.
3. What income tax rate does your corporation pay?
Combined federal + provincial. Most owner-managed corporations pay the small business rate on active income, roughly 9–12%, depending on province.
Your estimated tax savings
$3,726
kept between you and your corporation, every year you claim, after our fee.
Where those savings come from
Today, without a plan
You pay personally
To put $5,000 in your pocket for the bills, your corporation pays you $8,621, because at your 42% rate, $3,621 goes to income tax first.
$8,621 total
With a Medallion PHSP
Your corporation pays directly
The same $5,000 of bills is paid by your corporation, plus our 10% fee ($500) and GST (5%) on the fee. You're reimbursed the full $5,000: no income tax, because it isn't income. A PHSP reimbursement is designed to be a tax-free benefit under CRA's rules.
$5,525 total (bills + $525 fee & GST)
And the corporation's books
The whole thing is a deductible business expense
The $5,000 of bills plus our $500 fee is fully deductible against your corporation's income, and the GST on the fee comes back as an input tax credit. At your 11% corporate rate, delivering $5,000 of health care ends up costing the corporation just $4,895 after tax, money that was never taxed in your hands either.
| Corporation pays out (bills + fee + GST) | $5,525 |
| Income tax saved on the $5,500 deduction (11%) | −$605 |
| GST recovered as an input tax credit | −$25 |
| Net after-tax cost to the corporation | $4,895 |
Many medical and dental professional corporations make GST-exempt supplies and can't claim the credit; untick the box and the GST on the fee is treated as a cost instead (still deductible). Your accountant will know.
Common questions
Is this insurance?
No. There are no premiums, no renewals and no medical questions. Your corporation pays the actual bills through the plan, plus our fee, and the reimbursement to you is tax-free. You pay only when you use it.
What does it cost?
A flat $375 set-up fee per plan, waived when you apply with a referral code, whatever the size of your team. After that, each claim costs the expense plus a 10% administration fee, plus GST/HST on the fee. No premiums, no per-employee charge, no annual fee and no minimum claim.
What is the most it can cost us?
Each employee's yearly limit, plus our fee. The default is $15,000 and you can set anyone's limit lower in the first 30 days of each plan year. After that a limit can be confirmed or lowered once, never raised, until the next year. Unused room carries forward twelve months.
What can my team claim?
Anything on CRA's medical expense list: dental, orthodontics, glasses and contacts, prescriptions, physiotherapy, psychology, massage therapy with a registered practitioner, and much more, for each employee, their spouse and their dependent children.
Who runs it day to day?
You, or someone you trust. You can name more than one administrator, so an office manager can add people and set limits. Employees submit their own claims in the portal, a person at Medallion reviews every one, the company is debited, and the employee is reimbursed by EFT. Their prescriptions and practitioner's notes come to us, not to you.
Ready when you are
The application takes about fifteen minutes online. Prefer to talk it through first? Book a call and a person will walk you through it.
- Reviewed by people, not an algorithm
- Your data is hosted in Canada
- 2FA on every login
- Administering PHSPs since 2016