Incorporating own business - health care plan advice

[lazypucker]

Hi, I am in the process of incorporating my own consulting business and I am looking into getting health insurances and also a PHSP (Private Health Services Plan - I never heard of the term before until now, basically it is similar to a company health care spending account). Does anyone have any experiences getting these setup? I am looking for advices and recommendations for vendors.

Thanks in advance.

The not-so-lazy-anymore pucker

[cupofjoe]

PM sent

[DownInFlames]

Custom Care is the most popular PHSP provider. I would give them a call.

[j12iggy]

I set one up and it is very easy. I used Brock Health. I shopped around a bit and they had the lowest admin fee (5%)- and their set up fee was low as well. Not sure of the website - just google brock health. They are here in Calgary as well - so every time I have submitted receipts I have had a cheque back very fast.

[macker]

Brock Health is likely the best offer around for this type of structure. You could look at Hub or Custom Care also but they all have higher set up fees and typically 10% admin fees. Brock is $100 set up fee and then 5% admin. Any others around with 5% admin vs 10% ? Located in Millrise so easy to track down if you need to
http://brockhealth.ca/

[Slava]

I like these plans in general, but I do wish that more people would use them in conjunction with an actual benefits plan for their own well being. It's perhaps not as a big of a deal if you are the sole employee of the business, but there are certainly cases where having a full insurance plan is a little smarter.

I've seen cases where employees have a set limit per year (say $3000). You go in for a root canal, bridge and cleaning and that $3k is shot. Now its true that a lot of medical coverages have limits on dental per year as well. The difference though is that with the PHSP your coverage is used up and now when you need prescription drugs, chiro, massage, etc. for the remainder of the year you are out of luck.

[macker]

Originally Posted by Slava

I like these plans in general, but I do wish that more people would use them in conjunction with an actual benefits plan for their own well being. It's perhaps not as a big of a deal if you are the sole employee of the business, but there are certainly cases where having a full insurance plan is a little smarter.

I've seen cases where employees have a set limit per year (say $3000). You go in for a root canal, bridge and cleaning and that $3k is shot. Now its true that a lot of medical coverages have limits on dental per year as well. The difference though is that with the PHSP your coverage is used up and now when you need prescription drugs, chiro, massage, etc. for the remainder of the year you are out of luck.

What are some examples of these cases? On a dollar in dollar out basis some of the traditional plans like Blue Cross, Manulife, Great West Life, Desjardins, GMS will end up costing more per year without a doubt. It is just a different way to finance health and dental and PHSP gives you more coverage for less money at the end of the year. Many people don't understand but either way you are going to be paying out money each month and if you aren't you should set that money aside regardless for when you need to use it. PHSP isn't a use it or lose it proposition but rather a pay as you go. A more honest approach to health and dental and 100% legit.

[Northendzone]

a PHSP is a defined benefit ($3,000 in the example used above), where as the insured plans from ABC, MLI etc would likely have higher limits for a variety of services like drugs, paramedicals etc that may only be reached if there was a larger almost catastrophic claim.

[macker]

http://www.customcare.ca/benefit-pla...d-catastrophic

[Slava]

Originally Posted by macker

What are some examples of these cases? On a dollar in dollar out basis some of the traditional plans like Blue Cross, Manulife, Great West Life, Desjardins, GMS will end up costing more per year without a doubt. It is just a different way to finance health and dental and PHSP gives you more coverage for less money at the end of the year. Many people don't understand but either way you are going to be paying out money each month and if you aren't you should set that money aside regardless for when you need to use it. PHSP isn't a use it or lose it proposition but rather a pay as you go. A more honest approach to health and dental and 100% legit.

Ya, I agree that they have their place and they do save a business some money. I gave an example underneath though; if you have a limit for employees on the dollar amount then this could be chewed through in one dental visit (for example). You won't see that with prescriptions or paramedicals very often, but some of the bigger ticket costs can lead to that issue.

I'm not at all suggesting that people shouldn't use these at all, and not for a second saying that they are a bad product. You're right to say that its a different way to get that coverage and has some definite benefits.