With a PHSP there is no monthly premium, co-insurance, renewal increases, healthcare questions or age limit. Reimbursement is 100% paid within 3-5 business days directly into the employee's bank account.
With group insurance the company must pay a monthly premium and reimbursement is usually 80/20, 50/50 or the expense is not covered, leaving the employee out of pocket a portion or the entire amount.
Incorporated businesses have no applicable limits.
Unincorporated businesses must adhere to the maximum limits set out in the Income Tax Act, Section 118.2(1). Household maximum of $1,500 per adult, $750 per child and anyone in the family can use the entire amount.
For pre-funded plans: The money is held in the trust account until a claim is processed, then funds are release to pay for the claim.
For fund on demand plans: The money is deposited into the trust account and withdrawn once the claim is processed, leaving a zero balance.