HealthRabbit provides a cost-plus service structured as a Private Health Services Plan, or PHSP, or a Health Spending Allowance (HSA) as defined here. The HSA is a mechanism where the health expenses of business owners and employees in certain circumstances can be transformed into a legitimate business expense and a non-taxable benefit to the employee, through use of a third-party (HealthRabbit).
If the reduction of personal taxes is greater than the cost of operating the PHSP, then a tax-savings is captured. This is beneficial especially to the self-employed, consultants, or professional corporations where the benefit is for immediate family.
Enrolment to a HealthRabbit Private Health Services Plan is done online and is a simple process. Information you will need prior to enroling:
In addition to the above information, you will need to decide on the year-end date for employees to submit claims and the effective date for the plan to start (you can set this as early as the start of the current fiscal year).
Once submitted, we will review and complete the setup of your account. You will receive an invoice for the enrolment fees, and if applicable, your pre-funding amount. Once the fees are paid, and your Employees list has beeen submitted and processed, your employees will receive a welcome email with instructions for setting up their account and submitting claims. All employees receive their own account linked to your company where they can submit claims and view their claim history. Email addresses are the key way for all site users to access the site.
For Pre-Funded Companies:
Once setup is complete and welcome packages are delivered, your employees can start submitting claims and you willl receive reports based on your funding thresholds and fiscal year-end dates.
For Scheduled Payment Companies:
We will contact you to set your scheduled dates and claim submission deadlines for the first year. Invoices will be delivered based on these dates and claims will be made when payment is made.
What does using a PHSP look like to an employee? It's fairly simple and will be similar to your experience with supplemental insurance:
The time to receive reimbursement is dependant on the type of plan the employer is enrolled in. The fastest option is a pre-funded plan. Scheduled payment plans still allow an employee to plan the timing of when they incur their expenses but are dependant on employer-chosen dates. Employees receive reimbursement of 100% of their out-of-pocket expenses, including any GST or HST paid.