How it works
A health plan that's really a tax strategy
A Private Health Services Plan (PHSP) is a CRA-recognized arrangement that lets your corporation pay your family's medical expenses directly. The corporation deducts the cost; you receive the benefit tax-free. Medallion Health administers the plan: the record-keeping, claim review, and payments a properly run plan needs.
You
The incorporated owner. Most Medallion plans cover exactly one person and their family.
Your family
Your spouse or partner, children under 18, and children under 25 attending post-secondary.
Your employees
Optionally extend the plan to employees and their families, a real benefit with no premiums.
One requirement: you must be incorporated. CRA's position is that cost-plus plans don't qualify for sole proprietors. If you're unincorporated, talk to your accountant first, or to us, and we'll point you in the right direction.
Getting started
Setting up takes just a few minutes online. You tell us about your corporation, who the plan covers, and accept the plan terms. Our staff review every application personally (usually within a business day or two), and your plan takes effect on approval.
The one-time setup fee is a flat $375 plus GST, whether the plan covers just you or your whole team, and it's waived entirely if you were referred with an agent code. After that, most plans pay nothing but 10% + GST on claims, when you claim. The one optional extra: enhanced coverage above the standard $15,000 annual limit, at $100 per additional $5,000 block per year, plus GST.
The life of a claim
- 1
Pay as usual, keep the receipt
See your dentist, optometrist, or pharmacist and pay the way you always have. Any CRA-eligible expense for you, your spouse, or your dependent children qualifies: children under 18, under 25 in full-time post-secondary education, or any age where dependent due to disability.
- 2
Submit the claim online
Log in to your portal, enter the line items, and photograph or upload each receipt. The portal totals everything, shows your remaining annual coverage, and tells you exactly what your corporation will fund. Submit any amount; there is no minimum claim.
- 3
Real-person review
Medallion staff, not an algorithm, review your claim and receipts. If anything is unclear we email you directly. For employee claims, the employer approves first, and they see only the basics: employee name, generic category, and total. Never the receipts or details.
- 4
Your corporation funds it
Once approved, your corporation funds the expense plus the 10% administration fee and GST by pre-authorized debit. That whole amount is a deductible business expense.
- 5
You're reimbursed, tax-free
The reimbursement arrives in your personal account by direct deposit. We run payments twice a month. When the plan's conditions are met, the reimbursement isn't a taxable benefit: nothing to report on your T1.
Privacy is built in
Health information is sensitive, so the portal enforces privacy at the database level. Employers approving an employee's claim see the employee's name, the date, a generic category like “Vision”, and the total — never which family member was treated, what for, or any receipt. Only Medallion staff see full details, because someone qualified has to review the claim.
Where the money flows
Claim funds move through a dedicated trust account, Medallion Health Corporation In Trust, separate from our operating business. Your corporation funds approved claims by pre-authorized debit; reimbursements go out by direct deposit twice a month. Every action on a claim is logged.
Own the company? Two things CRA expects
First, participate as an employee: actively working in the business and receiving T4 employment income, not dividends alone. Second, keep each person's annual limit reasonable, in line with what you'd offer an arm's-length employee doing the same job. Our onboarding and limit-setting walk you through both, and your accountant can confirm how they apply to you.
Questions about your situation?
Opening an account takes just a few minutes. And if your corporation is a little different, the consultation is free. You'll talk to a person, not a chatbot.
- Reviewed by people, not an algorithm
- Your data is hosted in Canada
- 2FA on every login
- Administering PHSPs since 2016