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Alternative Coverage Benefits

Effective January 1st 2018, Serre Financial added a new expense category to the Private Health Services Plan (PHSP) named "Alternative Coverage Benefits".

Permitted under the Income Tax Act (subsection 248), substantially all of the premiums paid under your plan must be for allowable medical, health and dental expenses. Substantially, all meaning 90% which leaves 10% to be eligible on items that would otherwise not be covered. 

Here are some ways an employer benefits from this addition: 

  • Having more flexible coverage can increase morale in the workplace
  • A stronger plan makes a position more valuable, thus incentivizing tenure and lowering turnover
  • More opportunities to save as a company versus traditional insurance 

This expense category allows an employee to claim up to 10% of their total amount claimed (for that plan period) towards many common items related to one’s well-being.  For example, if you were to claim $1,000 in regular benefits through your PHSP you would now have $100 that can be claimed towards things such as: 

  • Vitamins
  • Minerals
  • Over-the-counter medication (no prescription necessary)
  • Self-hygienic products
  • Contraceptives 

Serre Financial has created and maintains a list of approved items that can be claimed. 

It is important to note that the 10% used cannot exceed the plan limit as set by the plan administrator.

For example, if you have a limit of $1,500 and you claim $1,400 in regular benefits through your PHSP, then your 10% is $140, however your limit only allows for $100 more during this plan period. In this case a maximum of $100 can be claimed under Alternative Coverage Benefits. 

Serre Financial will keep track of how much you have left (your 10%) and you will be able to see this information at any time by logging into the website.  Please note that once this category is added on, it will be active for the remainder of the plan period you have set.