DHC Administrators Limited | Private Health Services Plans

By: Dhc Administrators  09-12-2011
Keywords: health care, Health Services, Private Health Services

DHC Administrators Limited | Private Health Services Plans

Traditional health care plans simply do not offer the flexibility that today’s business environment demands. Increasingly, when it comes to deciding how health and dental care dollars are spent, consumers want control.

Private Health Services Plans give control to the consumer. With a Private Health Services Plan, the client gains both cost control and plan flexibility.

What is a Private Health Services Plan?

As the name suggest, a PHSP is an account set up by the employer instead of, or in addition to, an insured health and dental plan. It is also a form of self-insurance that in many cases can cost less than standard medical coverage, especially when tax implications are considered. Private Health Services Plans are also known as Health Spending Accounts, Self-Insured Plans and Cost Plus Plans.

Why are PHSPs so popular?

A PHSP provides employers with a convenient way to deliver tax effective compensation, provide employees with greater flexibility, cap spending (through a defined contribution as opposed to a defined benefit) and soften the impact of higher employee cost sharing.

Employees are empowered to select their own health and dental benefits. Successful plans increase employee understanding of their benefits. With these benefit packages, they also learn to select benefits wisely, choosing only the amount and type of coverage they need. This streamlining process can lead to substantial savings for employers.

How are Private Health Services Plans Regulated?

The biggest advantage to a Private Health Services Plan is that it allows health related expenses to be paid on a pre-tax basis. That is, employees can be given tax-free reimbursement for any eligible medical or dental expenses.

How do Private Health Services Plans Work?

In a Private Health Services Plan, an employer contracts a third party administrator (DHC) to manage the employee’s claims as per the definitions of the plan. The employer promises to reimburse the cost of such claims plus an administration fee and applicable taxes. All employee claims are then adjudicated by DHC to ensure they meet the criteria established by CRA. Eligible claims are then reimbursed by DHC to the employee resulting in a non-taxable benefit to the employee.

Keywords: health care, Health Services, Health Services Plan, Health Services Plans, Private Health Services, Private Health Services Plan, Private Health Services Plans

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DHC Administrators Limited | Claims Processing

A major advantage to the establishment of a Private Health Services Plan is that an employer is able to offer its employees a flexible benefits package that is non-taxable. This is accomplished in compliance with the Income Tax Act and must be administered by a Third Party Administrator, in this case DHC Administrators Inc. The amount reimbursed is in compliance with Canada Revenue Agency guidelines and the plan as designed by the employer.


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DHC Administrators Limited | Reporting

This information is also available on an “as needed” basis by contacting the office of DHC Administrators. Employees may receive an up-to-date status of their individual amounts by contacting DHC Administrators. Companies will be provided with claims usage and trust account information two months prior to renewal.


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Our sales representatives will ensure you are given all the information you need to make the best choices for your given situation – choices that put you in control of your costs and claims coverage. DHC will work with a company to design an employee benefits program to meet both the financial requirements of the company and the health care needs of the employee.


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DHC Administrators Limited | Funding Options

Monthly Billing – With monthly billing, a company is invoiced on a monthly basis to ensure continual payment of claims and the funding of additional insurance products. The desired turnaround time on claims payment and any additional products chosen will be taken into consideration when determining the payment options.


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DHC Administrators Limited | Fees

A company can expect to pay an initial start-up fee, an annual renewal fee and an administration fee for claims processing (plus applicable taxes). Options are available for companies and associations who are billed on a monthly basis.


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DHC Administrators Limited | Insured Health & Dental Plans

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