Top 3 Health and Dental Plan Updates:

Cosmetic Procedures – changes in eligibility for health and dental plans.

Health and dental plan customers across Canada will be affected by a recent change to cosmetic procedure eligibility. Effective March 10th, 2010, based on recent changes introduced with the 2010 Federal Budget, “purely cosmetic procedures” will no longer be eligible claims for your Olympia Health and Dental Plan. The phrase “purely cosmetic” seems to be somewhat left to interpretation. However, CRA (Canada Revenue Agency) has made it clear that liposuction, hair replacement, botox injections and teeth whitening will generally not be eligible expenses.

Olympia will keep our customers informed through the website as more information becomes available

HST applicable to B.C. health and dental plans – effective July 1st, 2010

For Olympia Benefits customers in British Columbia, the introduction of the HST will require you to add an additional 7% tax to the Olympia Benefits administration fee.

On July 1 2010, GST and the BC Provincial Sales Tax will be combined to form the Harmonized Sales Tax, commonly referred to as HST.

Olympia Benefits is obliged to collect HST from our customers and remit this amount to the respective government. In the past, we collected GST and remitted the 5% to the Federal Government. We now must collect 12% and remit to the Federal Government and to the Provincial government.

Olympia’s PayDirect Card – no longer available effective August 1st, 2010

Effective July 31, 2010 the Olympia Benefits PayDirect Card will no longer be able to be used for Pharmacy and other health care product claims.

All Pharmacies and other health care providers have been notified that the PayDirect card has been suspended and after July 31 they will be unable to process your claim.

The suspension of the PayDirect card in no way affects the viability of your health and dental benefits program at Olympia.

The card will be usable until July 31.

Health and Dental Insurance for Small Businesses – why it usually doesn’t work!

It is very common for small businesses to approach insurance companies about health and dental coverage – only to become frustrated with large premiums and restricted coverage. Health and dental insurance for small businesses is a difficult thing to obtain – especially at a reasonable cost!

Insurance companies are in the business of charging premiums in advance to cover the possibility of a claim down the road. So you may pay $100 per month to avoid paying a $5,000 dental bill in the future. Or at least that is how it appears. The problem with traditional health and dental insurance – especially for small business owners and entrepreneurs – is that the coverage is typically so restrictive that the numbers just don’t make sense. With nearly 15 years of experience in the health and dental plan industry, we have seen some incredible things! Some of them were actually hard to believe! For example, would it make sense that you pay $25 per month ($300 per year) to include vision coverage on an insurance plan – when it only covers $250 every two years? Of course not! It doesn’t make sense! But it happens every day.

With an Olympia Health and Dental Plan, you can have your business pay for your family’s vision care expenses, without paying any insurance premiums, and deduct 100% of the cost as a business expense. So you can have the same tax advantages as a health insurance plan, without the typical restrictions.

Olympia offers three unique health and dental plans depending on the structure of your business.

Please click here for information on Plan 1 – Health and Dental Plans for Small Businesses

Please click here for information on Plan 2 – Health and Dental Plans for Self Employed (sole proprietors)

Please click here for Plan 3 – Group Health and Dental Employee Benefits Plans

Self Employed Benefits

There are several benefits to being self employed – and tax benefits can be significant if properly used. Canadian business owners can take advantage of healthcare deductions which are not available to the general public by using an Olympia Health and Dental Plan –or a Private Health Services Plan.

A Private Health Services Plan is often used for offering cost effective health and dental benefits to employees. But for the sake of a very small company, even a company with only a single employee (You!), a PHSP offers the opportunity to use 100% of your family’s health and dental costs as a write off for your business.

Olympia has been offering these services since 1996 to business owners in Western Canada (Ontario and West.) Over the years it has become very clear that there is a common misunderstanding regarding tax deductions and tax credits for health and dental expenses on personal tax returns. While many people believe that their family’s health and dental costs are fully deductible on your tax return, this is actually very far from the truth.

The “Medical Expense Tax Credit” (METC) offered on personal tax returns in Canada offers a small tax credit which is calculated using the total amount of family medical expenses and an individual’s taxable income. The Medical Expense Tax Credit excludes the first portion of health and dental expenses incurred by your family every year (calculated as the first 3% of your income worth of expenses, or approximately $1,900 – whichever is less) and then offers approximately 25% of whatever is left. So for high income earners (such as many entrepreneurs), the first $1,900 worth of health expenses every year doesn’t give you any tax breaks at all! Many families spend around $2,000 each year, so the tax credit is basically non-existent.

Example:

• Self Employed Entrepreneur earning $100,000 per year.
• Family medical expenses total $2,000 per year.
• Ineligible amount for Medical Tax Credit $1,900
• Eligible amount $100
• Tax credit worth 25% of the eligible amount (25% X $100) = $25

So as a successful entrepreneur, you pay for $2,000 of health costs with after tax dollars (meaning you earned $3,000+ to pay for the expenses plus the income tax!) and you get a tax credit of $25! Not much of a benefit!

Getting back to a Private Health Services Plan (PHSP), you can have your business deduct 100% of the cost for your family’s health and dental expenses – right from the first dollar!

Affordable Health Insurance

Finding affordable health insurance in Canada can be a difficult task, especially if you need to obtain coverage as an individual or a small business owner. Health insurance is based on a concept of multiple people “funding a pool” where healthcare dollars build up and individuals can use the dollars as needed – when needed. The problem with this concept for individuals (and especially small companies) is that there are fewer people “funding the healthcare pool”.

Group health insurance plans can work well for large organizations with several hundred or several thousand employees. The sheer volume of people contributing to the insurance plan makes it affordable to join the plan, obtain coverage, and make claims as needed. For a small business, however, the situation is much different.

Imagine a business with 10 employees attempting to sign up for a group insurance plan. In many situations some of the employees will have health and dental coverage through their spouse, some of the employees will be ultimately young and healthy, and a couple of people within the group have large families – and huge dental bills!

So here are some of the problems with “traditional” health and dental insurance for this situation:

1) The employer and employees will be paying premiums to cover all employees, regardless of coverage offered through spousal insurance plans.
2) The young, healthy employees will cost the employer premium dollars, even though they don’t really need the plan.
3) The large families with extremely high dental bills (and therefore dental claims!) are driving up the price for everyone in the group – and even these families become frustrated with a restrictive benefits plan!

An effective, alternative solution that would work better for this company would be a PHSP or a “Health and Dental Spending Account”. Health Spending Accounts (also known as HSAs) provide more flexible benefits for employees, while offering considerably more cost control for employers. Please click here for more information on Health and Dental Spending Accounts (HSAs) for Businesses in Canada.

While the concept of affordable health insurance is tough for many people to believe, affordable healthcare plans are available if you really look into your options. This section has been designed to give you a brief overview of some issues surrounding health and dental coverage in Canada.
Please click here for a more in depth look at Affordable Health Insurance for Businesses in Canada.

Small Business Health Insurance

As a small business owner in Canada, health insurance (or health coverage in some form) is extremely important. Health and dental expenses for preventative health care, unexpected medical procedures, and various forms of dental work are simply a part of life. Employees of larger companies typically have group insurance programs to help cover these costs. Small business owners don’t usually have that luxury!

The biggest problem with health insurance for small businesses in particular is that the costs compared to the benefits rarely make sense. In order for an insurance company to provide sufficient coverage, while at the same time protecting their business and making a profit, the overall cost for insurance plans for a small business is typically too high to be worth it. So what are the other options for small businesses and self employed?

Olympia offers cost effective health and dental plans for small businesses and self employed business owners in Western Canada. Our health and dental plans come in various forms (and with a variety of names!) but at the end of the day, the results and benefits are consistent: better coverage for a lower cost.

The key highlights of an Olympia Health & Dental Plan are:

• No premiums!
• Fully tax deductible
• 100% cost control by your company
• More extensive coverage
• Happier employees!

Olympia’s health and dental plans are different than insurance plans. You only pay for what you use and everything is a write off for your business.

Please click here for more information about Small Group Health Insurance Plans and further explanation on Olympia’s available options.

Canadian Health Insurance

Health insurance for Canadians (and business owners in Canada) is an ongoing concern. There are continuous stories on the news regarding healthcare systems breaking down and an overall lack of necessary funding. Businesses in Canada have the ability to provide excellent healthcare coverage to their employees without using traditional insurance companies. Health plans can become affordable if they are designed properly. However, in many situations traditional health and dental packages are designed more to benefit the insurance company than the members joining the plan.

For unique alternatives for Health Care Coverage for Canadian Businesses, please click here.

Getting adequate insurance coverage for health and dental procedures is becoming more and more of a concern. It’s good to know your options for setting up a benefits plans for your office.

To receive more information on using Olympia Benefits as a Health and Dental Plan Provider, please follow this link or choose one of the following options. We’ll look forward to hearing from you soon!

For a unique alternative to traditional health and dental insurance for a small business, click here.

For new ideas on health and dental insurance options for self employed entrepreneurs, click here.

Emergency Health & Dental Insurance

Olympia Benefits specializes in offering cost effective health and dental plans for small businesses in Canada. Offering unique plans such as Private Health Services Plans (PHSPs) or Health and Dental Spending Accounts (HSAs), we are able to help small business owners and their employees receive cost effective, tax effective coverage – without paying any premiums.

In addition to our Private Health Services Plan, Olympia has been able to secure very low rates on emergency and exceptional expense insurance coverage for our customers. Exceptional Expense Insurance, or EEI, is a unique product which covers employees for significant health and dental related expenses that are common concerns – such as ambulance transportation or accidental dental expenses which require urgent and serious care.

With more than 26,000 small businesses as customers, and more than 70,000 employees within those businesses, Olympia understands your concerns. So we’ve been sure to handle them all in advance – and you don’t need to worry about a thing!

Please click here for more information on Exceptional Expense Insurance and Emergency Coverage.

FAQs

• What is a PHSP or a Private Health Services Plan?
• Can I set up a PHSP myself?
• Can my accountant set this up for my business without using Olympia?
• What types of health and dental expenses are covered under a PHSP?
• Are Private Health Services Plans (PHSPs) legal?
• When will my PHSP become effective?
• Who is Olympia Benefits?
• How does a PHSP compare to Health and Dental Insurance?
• Is there an ongoing fee for my Private Health Services Plan?
• Is my family also covered under my PHSP?
• Can I get vision coverage without paying a fortune?
• How can I get more health and dental coverage for a more reasonable cost?
• Who is an eligible dependant for my PHSP?
• How does a PHSP work?
• How will a Private Health Services Plan (PHSP) save me money?
• Does a PHSP work for owner /operators?
• How long have PHSPs been available to Canadian Businesses?
• How does an Olympia PHSP compare to Blue Cross?
• What are the costs for using a Private Health Services Plan – or a PHSP?
• Is there a waiting period after I sign up before I can use a PHSP?
• Will Private Health Services Plans (PHSPs) work with CRA?
• How long has Olympia been in business offering PHSP services?
• Are Pre-Existing Conditions Covered with an Olympia Health and Dental Plan?
• What is the benefit of a Private Health Services Plan to me?
• How do I sign up for a PHSP?
• What are the monthly fees for a PHSP?
• Do I need to include all of my employees in my company’s PHSP?
• Can I use a Private Health Services Plan alongside of a health and dental insurance plan?
• Where are you located? Where does Olympia have offices?
• Can I cover my child’s braces on the Olympia Health and Dental Plan?

What is a PHSP or a Private Health Services Plan?

A Private Health Services Plan (also known as a PHSP) is a very simple, yet very effective tax planning tool for small business owners and self employed entrepreneurs in Canada. A PHSP enables small business owners to use family health and dental expenses as a fully deductible business expense – without paying any premiums which are typically associated with health coverage. The ability to write off health and dental expenses often creates an overall savings of more than 30% on all medical and dental related expenses. For entrepreneurs and self employed professionals, this is nearly a guaranteed way to cut your taxes and reduce your costs. If your family spends even $500 per year on health and dental related expenses – a PHSP will be worthwhile to set up.

It is important to use a proper administrator and a properly structured PHSP for your business. While the overall concept is typically straightforward, the actual implementation is more complex. Olympia has been offering PHSP administration since 1996 and currently administers plans for more than 26,000 businesses in Canada – and more than 70,000 employees. Please Contact Olympia Benefits today and Request Information!

Can I set up a PHSP myself?

One of the most interesting questions that we’ve heard over the years – and we still hear it today – is “Can I set up a Private Health Services Plan by myself?” The short answer to this question is “No. It’s not that simple.”

Over the nearly 15 years that Olympia has been involved in this industry, it has become very clear that there is inaccurate information being given out about Private Health Services Plans. Many financial professionals and tax advisors are extremely knowledgeable about a large array of products and tax strategies. However, with a large number topics and categories that they must keep up to date on, it is impossible to be an expert in everything. Olympia Benefits specializes in Private Health Services Plans so we are aware when rules change and notice when details are missed.

A PHSP is a tax planning vehicle which is based on the Income Tax Act, and therefore must be in compliance with CRA (Canada Revenue Agency) and their guidelines. If any details are missed, even seemingly minor details, your PHSP could be considered ineligible for deductions, and any potential tax benefits would be lost. For the small fee that Olympia charges to be an industry expert on PHSPs, it simply isn’t worth it to risk making a mistake.

Can my accountant set this up for my business without using Olympia?

As mentioned earlier, it is critical that a Private Health Services Plan is set up properly (based on CRA’s guidelines) in order for your business to receive a deduction for your family’s health and dental costs. One specific question that has come up occasionally over the years is “Can my accountant set up a PHSP for my business – without using Olympia Benefits?” This has always been an interesting question because while a professional accountant may have expertise surrounding PHSPs, it is more likely that your accountant is familiar with the concept – and understands the benefits. In order to actually set up a proper PHSP, there are several guidelines that must be followed, and many of these guidelines are frequently missed by not only professional accountants, but even by PHSP “providers”! Even some of the simplest, most straightforward rules are often missed – which will cause your PHSP to be disallowed by Canada Revenue Agency should an audit ever occur. So it isn’t really worth the risk!

However, let’s look at another scenario. Let’s assume that your accountant is 100% aware of every detail needed to properly structure a PHSP contract. How much does your accountant charge you on an hourly basis? We have yet to see a situation where using an accountant ended up costing less than using Olympia, and this is our primary business so we know all of the rules! Olympia currently handles PHSP contracts for more than 26,000 Canadian businesses. Nearly 100% of these customers have spoken with their own accountants and advisors prior to signing up for the program. Please Request More Information today for full details.

What types of health and dental expenses are covered under a PHSP?

One of the most common things that we hear from potential new customers is that they are frustrated with their insurance company! Does this situation sound familiar to you? You take your kids to the dentist, the dentist recommends about $6,000 worth of “teeth straightening” technology, and as you gasp at the bill you are happy that you have “insurance to cover it”. After leaving the dental office, you speak with your insurance company and find out that only $1,500 of the braces will be covered, even though you’ve been paying premiums for years? (Are you mad yet?)

This happens every day all across Canada. Health and dental insurance companies have been in the industry for so long that they understand the numbers and they know how to use them “creatively”. Dental insurance policies will typically have waiting periods, annual limits (especially on expensive dental procedures), and lifetime limits for things such as orthodontics (braces) where you really need the coverage. It is frustrating to no end. Now, enter Olympia Benefits:

The Olympia Health and Dental Plan can cover 100% of all health and dental related expenses – as defined by the Income Tax Act.

This means that it covers:

1. Basic dental care and major dental work (such as braces, bridges, crowns, root canals)
2. Vision care (including glasses, frames, lenses, contact lenses, laser eye surgery)
3. Chiropractic care, massage therapy, physiotherapy
4. And more!

The Olympia Health and Dental Plan is based on CRA’s guidelines for Private Health Services Plans – so anything that would qualify to put on your personal tax return is an eligible expense!

Are Private Health Services Plans (PHSPs) legal?

Yes! Private Health Services Plans are 100% legal in Canada – as long as they are structured properly! Olympia went to great lengths to make sure that our PHSP is completely in alignment with CRA’s guidelines (Canada Revenue Agency) for how PHSPs are supposed to be structured. There are multiple components that must be accurately followed in order to ensure the tax benefits available through a PHSP. If any of CRA’s requirements are not met, there is a possibility that CRA will deny the deduction, and therefore render the PHSP useless. If you use an Olympia Private Health Services Plan, you do not need to worry about any of these concerns. Olympia has designed our PHSP based completely on information available by CRA.

For further information on Why to Use Olympia for Your PHSP, please click here. You will find valuable information on How to Choose Your PHSP Provider.

When will my PHSP become effective?

Effective dates for PHSPs are an important component for CRA eligibility. Olympia will only make your Private Health Services Plan effective on the first day of the current month, or the first day of next month, depending on your preferences, and if there are other employees involved.

A common question that we get asked is “Can I backdate my plan?” and the answer is “No - not beyond the first day of this month.” Occasionally we hear of smaller “providers” offering the opportunity to backdate. Olympia has established more than 26,000 PHSPs in Western Canada since 1996 – making us the largest provider in the country. We would like to backdate, but it is not allowed based on CRA’s regulations. If anyone tells you otherwise, please run in the other direction! We’ll be happy to help you out after you make that call!

Who is Olympia Benefits?

Olympia Benefits is a wholly owned subsidiary of Olympia Financial Group; Trading Symbol OLY (TSX-V). Offering Private Health Services Plan administration since 1996, Olympia is the largest provider of “stand alone” PHSPs in the country.

Specializing in offering cost effective benefits programs for small businesses, Olympia has grown into an industry leader – and an industry innovator. As our company grows we continue to add innovative options and solutions for small business owners in Canada.

How does a PHSP compare to Health and Dental Insurance?

Typically individuals, families, and businesses will purchase a health and dental plan for one of three reasons:

1. Suddenly a large health or dental expense has shown up, and the timing is important
2. They are concerned about uncertain health and dental expenses in the future – so insurance can spread out the risks over time
3. The business wants to offer employee benefits

Health and dental insurance is designed to charge premiums on a regular basis (usually monthly or annually) in exchange for “coverage” of expenses incurred during the life of the policy. The overall concept is that the customer (policy holder) chooses to pay in advance, and on a regular basis, just in case a large medical bill or dental bill occurs in the short term. The customer is “betting” that the cost for premiums is a good deal in exchange for the potentially large expenses that may occur. The insurance company on the other hand is “betting” that the policy holder will be healthy, and the premiums will contain a decent amount of profit for their company.

With a Private Health Services Plan offered through Olympia Benefits, a much different scenario occurs. Rather than pay premiums on a regular basis for “coverage”, you simply pay as you go. You only pay when you incur health and dental costs for your family or your employees, and if everyone is healthy (and without medical bills) your company doesn’t pay anything.

This concept of “self insuring” through your business is becoming more popular as business owners across Canada realize that the option is available. If you analyze it carefully (and Olympia has looked at thousands of cases!) you will likely notice that the majority of health and dental expenses for your family are predictable! So rather than pay premiums to an insurance company to cover predictable teeth cleanings, dental checkups, and prescription glasses, business owners are taking advantage of the flexibility offered by a PHSP.

Every time your family has a health or dental related cost, you simply have your business reimburse you for the costs using Olympia Benefits as an administrator (to maintain the tax free status of the benefits). No premiums. No fighting with insurance companies over the eligibility of claims. Just a no hassle, easy to use benefits plan that you get to control. Receive the same tax benefits as larger companies without the hassles! Request More Information today and choose from one of our three different benefit plans for Canadian businesses.

Is there an ongoing fee for my Private Health Services Plan?

The only ongoing fees for your Private Health Services Plan are administration fees which are calculated as you use your plan. If you have a year where you don’t make any claims – you don’t have any fees for that particular year.

Initial enrollment fees for the Olympia Health & Dental Plan are a one time fee only – and the fee is fully tax deductible. After that, it simply becomes a “pay as you go” system.

Is my family also covered under my PHSP?

Yes, absolutely! Any eligible dependants (as defined by CRA – Canada Revenue Agency) are eligible for your PHSP claims.

Can I get vision coverage without paying a fortune?

Vision care, and vision coverage, is one area of insurance that causes a lot of grief! With traditional insurance companies (unlike Olympia Benefits) you may end up paying hundreds of dollars each year for ridiculously restricted coverage on glasses and contacts. Olympia hears stories on a daily basis of terrible insurance plans charging offensive rates for hardly any coverage at all. The Olympia PHSP is much different – fortunately!

The Olympia Health & Dental Plan will give you the opportunity to deduct 100% of your family’s vision care expenses (including frames, lenses, contact lenses, and even laser eye surgery!) as a business expense – with no restrictions on coverage!

How can I get more health and dental coverage for a more reasonable cost?

Each one of us has health and dental bills at some point in time. It’s never a question of “if” but more a matter of “when”. So the real question is “how do you pay for your health expenses in the most cost effective way?”

In Canada, there are really only three different ways for you to pay for your dental expenses and regular health costs. They are:

1. Pay for it personally, out of your own pocket, using after tax dollars (Ouch!)
2. Sign up for an insurance plan that covers a portion of your expenses (Still requires extra money for large dental claims, etc.)
3. Use a Private Health Services Plan to have your business cover health and dental costs on a “pay as you go” basis. No fine print. No surprises. Fully tax deductible.

The term “coverage” itself can be a bit misleading when it comes to health and dental claims. With traditional insurance plans, the insurer is “covering you” – but only up to a limit which is specified in the contract. With Olympia Benefits, Olympia is not “covering you” – your company is – but Olympia makes it possible for this to happen in a cost-effective and tax-effective manner.

In most situations, “self insuring” for health and dental bills is the most cost-effective way to pay. Especially if you have a company and you can create a nice tax deduction.

Who is an eligible dependant for my PHSP?

Dependants are defined as your legal spouse and unmarried, unemployed dependent children including natural, adopted or step-children. Children of a common-law spouse may be covered if they are living with the employee.

1. 1. A spouse of an eligible employee who is either:
   1. legally married to the employee; or
   2. a person who is living with the employee and who is publicly represented as the employee's spouse or partner.
2. Any financially dependent member of the employee's household with whom the employee is connected by blood relationship, marriage or adoption.

Dependent children are eligible for benefits if they are less than 21 years of age unless otherwise specified by the benefit coordinator.

How does a PHSP work?

A PHSP is a very simple tool that provides cost savings on health and dental expenses, and significant tax savings for your business. When a PHSP claim goes through Olympia Benefits, your business will reimburse you for your family’s health and dental expenses on a tax free basis, then your business will deduct those costs. Olympia is in the middle of this process as an administrator – and by using Olympia any benefits paid out to you or your employees is a non-taxable employee benefit.

The actual claims process is quite simple, and very quick to turnaround. For small corporations and sole proprietorships, the claims process is as follows:

1. You pay for your health and dental expenses personally
2. Your business sends Olympia funding for the claims
3. Olympia reimburses eligible employees as a non-taxable benefit
4. Your business deducts the full amount (including administration fees) as a business expense.

How will a Private Health Services Plan (PHSP) save me money?

A Private Health Services Plan will save you considerable dollars on your family’s health and dental expenses. Rather than pay premiums every month to an insurance company, without any guarantee of how much you will actually claim in return, you can simply “pay as you go” with an Olympia Health & Dental Plan.

Small businesses across Canada have been using Olympia Benefits since 1996 to reduce their health and dental expenses. We commonly hear our new clients complaining about traditional insurance providers and the typically restrictive coverage. After signing up for Olympia Benefits, we hear something different – happy customers! With more than 26,000 small business customers, and more than 70,000 employees using our plans, our reputation speaks for itself.

Please Contact Olympia Benefits Today for more information on our excellent health and dental plans for small business owners and entrepreneurs.

Does a PHSP work for owner /operators?

Yes! One of the unique features of the Olympia Health & Dental Plan is that we offer our health plans to companies with only one employee. You don’t need a large staff to join the Olympia Health & Dental Plan. In fact, thousands of our customers are sole owner/operator businesses. We work regularly with engineering consultants, lawyers, doctors, real estate agents, and entrepreneurs from industries that we didn’t even know existed! The bottom line is this – if you have a business, and you have health expenses, we can probably save you money!

How long have PHSPs been available to Canadian Businesses?

Private Health Services Plans have been available to Canadian Businesses since the 1980’s. However, the actual implementation of the plans did not become overly popular until the late 1990’s. Starting operations in 1996, Olympia began offering PHSPs to the public with the most common question being “is this actually legal?” Small business owners across Western Canada could not believe that this was actually available to them – and they loved it! Since 1996, Olympia has established PHSPs for more than 26,000 small businesses in Canada.

How does an Olympia PHSP compare to Blue Cross?

Perhaps the most common question we receive is “How does the Olympia Health & Dental Plan compare to Blue Cross?” This is a very understandable question, and whether the provider is Blue Cross or any one of the other major health insurance providers, the answer is more or less the same:

When a business owner or an individual signs up for a Blue Cross insurance plan, they may sign up for a group benefits plan, a personal plan or a family plan. With any of these plans you will pay a monthly premium for a specified amount of coverage on specific expenses. The policy you choose will explain how much will be covered for particular expenses (such as vision care, chiropractic care, dental cleanings, major dental work, etc.) and the monthly premium costs will vary based on the types of coverage you are interested in.

When you incur medical or dental bills, such as having a root canal or a bridge on your teeth, you will submit the claim to Blue Cross and they will pay a portion of the expense based on the details stated in your policy. Typically there will be annual limits and lifetime limits on many expenses, as the insurance company (Blue Cross or anyone else) needs to cover their potential losses, and also (as a business) maintain a profit.

As an alternative, the Olympia Health & Dental Plan provides the same tax advantages as health and dental insurance plans but without the monthly premiums. An Olympia Private Health Services Plan (or PHSP) is a tax planning vehicle that enables your business to deduct – or write off – 100% of your family’s health and dental costs, but on a “pay as you go” basis. Olympia charges a tax deductible administration fee which is calculated based on the amount of your claim. In years where you don’t incur and medical or dental expenses, you don’t pay Olympia any fees.

This type of health and dental plan provides the opportunity to offer cost effective benefits for your employees whether your business has only one employee, or hundreds of employees. However, with nearly 15 years of experience in the industry, it is clear that Olympia’s most common customers are small and medium sized companies. Olympia is the #1 provider of health and dental plans for one person companies in Canada.

What are the costs for using a Private Health Services Plan – or a PHSP?

PHSPs have two different costs which are typically involved. Initially there is a one-time enrollment fee to join the plan. This fee is 100% tax deductible by your business. We typically find that families spending more than $350 per year on health and dental expenses (one painless trip to the dentist!) will save more than their initial set up fees in the first year alone. Please contact us for enrollment details and sign up fees for your situation. If you are a member of a professional organization that we deal with you may be eligible for significant discounts on your initial enrollment fees. Either way, fees are minimal up front and are fully tax deductible.

Secondly, Olympia Benefits charges a 10% administration fee on all claims that are submitted. In years where you do not incur any medical expenses, you don’t pay any fees. This is truly a “pay as you go” system!

Additional optional products (such as Exceptional Expense Insurance and Travel Insurance) are calculated separately. Please Contact Olympia Benefits for details on any of these prices.

Is there a waiting period after I sign up before I can use a PHSP?

Health and dental insurance companies will typically have waiting periods in place for new insurance policies – strictly to prevent customers “abusing” the system. For example, if you know that your teenage daughter needs $7,000 worth of orthodontic work, and you sign up for an insurance plan today, it isn’t reasonable that you expect the insurance company to cover those expenses immediately. This would lead to people abusing the insurance policies and cancelling policies immediately after making huge health and dental claims.

With Olympia, since we are not in fact “insuring” the expenses, there are no waiting periods to use the plan once your business has enrolled. The plan will have a specified effective date (either the first day of the current month, or the first day of next month) and the plan will be effective as of that day.

Will Private Health Services Plans (PHSPs) work with CRA?

Private Health Services Plans are based entirely on guidelines set out by Canada Revenue Agency (CRA). There are multiple layers of detail that must be followed in order for a PHSP to qualify as an eligible deduction, and missing even one of the key points can result in a PHSP being disqualified. With this in mind, it is amazing that some PHSP “providers” are still so far offside with CRA’s requirements for a properly structured PHSP.

Olympia spent considerable time and resources in the beginning of our company to ensure that our customers would not have any concerns with CRA. Our PHSPs have been tested and reviewed by CRA, and they have passed all of the necessary requirements. In addition to official reviews by CRA, Olympia’s PHSP has also been reviewed by thousands of small business accountants across Canada. A large percentage of our 26,000+ small business customers had our PHSP reviewed by their accountants prior to proceeding. That is a lot of positive reviews by the experts!

Please Contact Olympia Benefits today to learn more about our Health and Dental Plans for Small Businesses.

How long has Olympia been in business offering PHSP services?

Olympia has been offering small business health and dental plans for nearly 15 years – since 1996 – and we are continuing to grow! Starting initially in Calgary, Olympia now has established offices in Calgary, Edmonton, Vancouver, Victoria, Winnipeg and several other small locations across Western Canada (Ontario and West.)

We are proud of our strong industry reputation and with more than 26,000 companies (totaling more than 70,000 employees) using our health plan administration services, Olympia is a clear leader in the PHSP industry in Canada.

Are Pre-Existing Conditions Covered with an Olympia Health and Dental Plan?

Yes! With an Olympia Health and Dental Plan, pre-existing medical conditions (including pre-existing prescription drug needs) are fully eligible. Subject to Canada Revenue Agency (CRA) guidelines, any health and dental expenses which are eligible for your personal tax return (including prescription drug costs) are fully eligible for the plan.

Having said that, Olympia believes in delivering as much value as possible to our small business customers. So in situations where it makes sense to bring in provincial drug programs, we offer as much information as we can.

All across Canada, there are provincial drug programs which have been designed to assist with ongoing and large prescription drug costs. While the plans differ slightly from province to province, the overall goal is consistent – to help Canadian residents fulfill their prescription drug needs without causing significant financial stress. In many situations, an Olympia Health and Dental Plan combined with a provincial drug program can be the most cost-effective way to pay for your family’s health and dental costs.

If you have a small business, and you have significant prescription drug costs or other pre-existing medical conditions, please contact Olympia Benefits today for information on using a combination of provincial programs and Olympia Health and Dental Plans.

What is the benefit of a Private Health Services Plan to me?

Private Health Services Plans help to significantly reduce health and dental costs for small business owners and employees in Canada. If you own a business, and you have health and dental bills (which we all do!), then a PHSP will likely save you a considerable amount of money.

The higher your tax rate and the more medical bills you have – the more money you will save! A Private Health Services Plan serves primarily as a very effective tax planning vehicle for small business owners. For businesses with a number of employees, a PHSP provides a cost-effective alternative to traditional health and dental insurance.

Regardless of the size of your business (1 employee or 50 employees), an Olympia PHSP will likely cut your costs down – and probably cut them down in a big way! Contact Olympia Benefits today for FREE information about Health and Dental Plans for Businesses in Canada.

How do I sign up for a PHSP?

Signing up for a PHSP is easy! In fact, if you have small corporation or a sole proprietorship, you can Sign Up Online in less than 5 minutes! If your business has several employees, this option is not currently available simply due to the large variety of options that should be explained to you by one of our professionals.

Whether you Enroll Through One of Our Agents, or Sign Up Online, the application process is very quick and very easy!

In most situations, signing up for an Olympia PHSP should take less than 10 minutes! So please Sign Up Today!

What are the monthly fees for a PHSP?

There are no monthly fees for the Olympia Health and Dental Plan! There is an initial enrollment fee (one time only) and after that you only pay a 10% administration fee on any claims that you submit. This is one of the unique features of Olympia plans.

We do, however, have Optional Travel Insurance Plans and Exceptional Expense Insurance Coverage to cover specific types of events and medical emergencies. These policies do have monthly costs, but they are optional and separate from your health and dental plan.

Do I need to include all of my employees in my company’s PHSP?

In order for your PHSP to be considered a non-taxable employee benefit, it must meet a number of requirements as set out by the Income Tax Act. (Don’t worry – Olympia will handle the details!)

In most situations, it is required that all full time employees be included in the plan. However, there are exceptions to this rule depending on the size of your business, classifications of employees, length of employment, etc.

For complete details about requirements for adding employees, it is highly recommended that you Speak With an Olympia Representative to ensure accurate information after we learn more about your business structure.

Can I use a Private Health Services Plan alongside of a health and dental insurance plan?

Yes! Private Health Services Plans work very well alongside of traditional health and dental insurance plans. While we have thousands of customers who have chosen to cancel their previous health insurance, we also have thousands more who prefer a combination of insurance “coverage” and self-insuring through their business.

One potential option is to adjust your current insurance plans to only cover medical emergencies, and leave the more predictable expenses (such as teeth cleanings and vision care) to your PHSP. This can reduce the premium costs for your insurance plan while still giving you a feeling of protection.

For expenses such as regular dental work and maintenance, you can have your business cover the cost and get a deduction, without involving the insurance company.

The choice is yours! You can either use an Olympia PHSP on its own, or alongside of a health and dental insurance provider.

Where are you located? Where does Olympia have offices?

Olympia Benefits is based out of Calgary, Alberta and we have regional offices in several locations across Canada. Our largest centers are currently Calgary and Edmonton (in Alberta), Vancouver and Victoria (in British Columbia) and Winnipeg (handling all of Manitoba). We also have offices in Regina, Saskatoon, Kelowna and several other smaller locations.

Olympia Benefits also administers Private Health Services Plans for new customers in Ontario who enroll through Olympia Financial Group Inc. Olympia Financial Group is the parent company of Olympia Benefits and Olympia Trust Company.

If your business resides in Ontario – or anywhere further West – Olympia has a health and dental plan that will suit your business. Please contact us today!

Can I cover my child’s braces on the Olympia Health and Dental Plan?

Yes! Braces (orthodontics) can be fully covered using Olympia Benefits. By signing up for Olympia’s PHSP, your business can pay for 100% of your child’s braces (or your own!) and deduct 100% of the cost as a business expense. It seems too good to be true – but it’s real! This is just one of the tax advantages available if you own your own business – and if you use Olympia Benefits!

Braces can often cost $5,000 or $6,000 – sometimes more – and without an Olympia Health and Dental Plan in place, this expense would be paid with after tax dollars! Signing up for an Olympia plan turns this painful bill into a tax deduction for your business and cuts the cost down significantly. The thought of “affordable braces” is tough to imagine, but with your business paying the bill – it becomes much easier.