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Private Health Services Plan

PHSP vs Traditional Insurance

Traditional Insurance Is Costly and Inefficient

Employee benefits are a constantly changing landscape. What benefits to provide and the most efficient route to providing the targeted benefits is a challenging task for any employer.  Traditional insurance health benefit plans are restrictive by nature and tend to force employers into a pre-designed (by the carrier) package that may or may not be right for each employee.  Premiums are on a constant rise, coverage is restrictive and porous, and there are tax consequences for group plans that may not be available for small business.

Olympia Trust Administered Plans vs. Insurance Plans

The Olympia Trust Company Private Health Services Plan effectively reduces health and dental expenses. Expenses are paid for with pre-tax business dollars instead of after-tax personal dollars. Since the plan is funded differently, a savings of up to 40% may be realized.

Most consumers are aware that there is no “fairy godmother” paying for their family’s care, but they also demand best value for their money. Traditional insurance plans rarely pay out more than 60% of the money paid into premiums. To ensure this happens, they put caps on all aspects of coverage. For example, if you are willing to pay the very high premiums involved in orthodontics coverage, the cap is a $1,500 lifetime maximum, but orthodontics usually is over $5,000. You the consumer pay the extra $3,500.

Thus, insurance may be a costly product to buy. Many small business owners are becoming aware of this and are implementing a cost plus plan to effectively cover employee medical and dental expenses.

Traditional medical and dental plans are not a good example of true insurance.  True insurance is valuable in that small premiums are paid to offset the chance that a large financial hardship may be avoided.  The Canada Health Act along with Provincial Governments provide Canadians with true health care insurance.  Canadians do not pay for hospital stays or doctor visits.  Each province has an effective plan that covers drugs at a very reasonable cost if and when needed.  Pre-existing conditions do not impact these plans.  For more information on these government plans, please contact Olympia Trust.

A PHSP will provide a number of benefits that a traditional insurance plan cannot.

Traditional Insurance

  • Many medical/dental expenses not covered
  • Restrictive reimbursement levels with a particular focus on dental/vision
  • High cost of premiums that can lead to a premium creep
  • You pay premium regardless of use
  • Enrollment and plan design set by insurer
  • Difficult claims process at time with possibility of rejection
  • Lengthy claim turn around
  • Employees have difficulty measuring the value of the plan to themselves

OLYMPIA TRUST PHSP

  • 100% coverage on virtually any health/medical expense (link this to Appendix B)
  • No premiums = controlled cost
  • Pay for services only when claim is made
  • Employer designs plan to his/her satisfaction
  • No deductible clauses – You set limits
  • Easy to use claims process
  • Quick turn around for claims
  • All payments are 100% tax deductible for the employer and reimbursement are 100% tax free to the employees
  • Benefits equal the Benefit Limit