For physicians with a professional corporation
Pay for your family's dental, vision and routine care through your corporation. Tax-free to you.
You already run your practice through a professional corporation. A Private Health Services Plan lets that corporation pay the medical bills you are paying today out of your after-tax salary or dividends. The corporation deducts them; you receive them tax-free. No premiums, no insurer, nothing to renew.
- Reviewed by people, not an algorithm
- Your data is hosted in Canada
- 2FA on every login
- Administering PHSPs since 2016
Provincial coverage stops at the clinic door
Dental, orthodontics for the kids, glasses, physiotherapy, therapy: none of it is covered, and you are paying for it with the most expensive dollars you have.
Group plans don't fit a one-doctor corporation
Premiums are priced for groups, coverage is capped by category, and you pay whether or not you claim. A PHSP charges only when it is used.
Your accountant will approve
A cost-plus PHSP is a long-standing arrangement under the Income Tax Act. We administer it, keep the records, and stay out of your accountant's way.
A worked example
A physician paid mostly by dividends, with a spouse and two children
$6,000 in a year on orthodontics, two pairs of glasses, physiotherapy and prescriptions. Marginal rate 48%, corporate rate 11%.
Paid personally
$11,538
earned before tax to have $6,000 left for the bills. $5,538 of it goes to income tax first.
Paid through the plan
$6,630
the bills, our 10% fee ($600) and GST on the fee ($30), paid by the corporation and deducted. You receive $6,000 tax-free.
Kept, every year
$5,638
between you and the corporation, after our fee: the personal tax skipped, plus the corporate deduction.
Medical professional corporations usually make GST-exempt supplies and cannot claim the GST on our fee back, so the example treats it as a cost. It is still a business expense. An illustration, not tax advice; your salary and dividend mix, province and other credits change the exact figures.
Your numbers
What would it save you?
Three quick questions. Nothing you enter is stored.
Dental, glasses, prescriptions, orthodontics, physiotherapy, and more, for your whole family.
$6,000
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
$4,444
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 $6,000 in your pocket for the bills, your corporation pays you $10,345, because at your 42% rate, $4,345 goes to income tax first.
$10,345 total
With a Medallion PHSP
Your corporation pays directly
The same $6,000 of bills is paid by your corporation, plus our 10% fee ($600) and GST on the fee. You're reimbursed the full $6,000: no income tax, because it isn't income. A PHSP reimbursement is designed to be a tax-free benefit under CRA's rules.
$6,630 total (bills + $630 fee & GST)
And the corporation's books
The whole thing is a deductible business expense
The $6,000 of bills plus our $600 fee is fully deductible against your corporation's income, and so is the GST on the fee. At your 11% corporate rate, delivering $6,000 of health care ends up costing the corporation just $5,901 after tax, money that was never taxed in your hands either.
| Corporation pays out (bills + fee + GST) | $6,630 |
| Income tax saved on the $6,630 deduction (11%) | −$729 |
| GST recovered as an input tax credit | −$0 |
| Net after-tax cost to the corporation | $5,901 |
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
I'm the only employee of my corporation. Does it still qualify?
Yes, and this is the situation Medallion's plan is designed for. CRA has published positions on shareholder-only plans and we have built the plan around them: coverage is prospective only, limits are set for the year in advance, and every claim is adjudicated and documented. We are candid about the remaining risk on our partner pages; your accountant is welcome to read them.
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. After that, each claim costs the expense plus a 10% administration fee, plus GST on the fee. There is no minimum claim and no annual charge.
What can I 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 you, your spouse and your dependent children. The default limit is $15,000 per employee per year, with unused room carried forward twelve months.
How fast is a claim paid?
You upload the receipt in the portal, a person at Medallion reviews it, your corporation is debited, and the reimbursement goes to your personal account by EFT. Claims are reviewed by people, not an algorithm, and if anything is unclear we email you directly.
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