How a PHSP/HSA Works with HealthRabbit

Discover the Power of a PHSP/HSA

HealthRabbit offers a cost-plus service structured as a Private Health Services Plan (PHSP) or a Health Spending Allowance (HSA). An HSA is a mechanism that transforms health expenses of business owners and employees into a legitimate business expense and a non-taxable benefit, through the use of a third-party like HealthRabbit.

When the reduction in personal taxes is greater than the cost of operating the PHSP, you capture tax savings. This is especially beneficial for the self-employed, consultants, or professional corporations where the benefit extends to their immediate family.

Benefits for the Self-Employed:

  1. Your family health, dental, and vision expenses become fully deductible.
  2. Comprehensive coverage with few limits.
  3. Supplements spousal plans using regular benefits.
  4. Reduction in personal and business taxes.

Benefits for the Employer:

  1. Significant tax savings by converting employee benefits to a business expense.
  2. Provides health, dental, and vision coverage while managing costs and paying only for what is used.
  3. Tailor the program to your business's budget while following a few simple rules.
  4. PHSPs cover gaps in traditional insurance where full coverage is not available.
  5. Increases employee loyalty, retention, and satisfaction by providing coverage where regular health insurance is not feasible.

Benefits for the Employee:

  1. Privacy - Claims are submitted directly to HealthRabbit. Employers only see limited details on the invoice, and no receipts pass through their hands.
  2. Freedom to spend your health dollars where needed, using your full allotment at your discretion.
  3. No premiums to handle, and reimbursed money is not a taxable benefit.
  4. If you purchase supplemental insurance, the premiums are eligible to be paid under the PHSP.

Employer Enrollment Overview:

Enrolling in a HealthRabbit Private Health Services Plan is an easy online process. You'll need the following information:

  • Legal Business Name
  • Business Mailing Address
  • Number of Employees
  • Incorporation Status
  • Fiscal Year End
  • Plan Administrator Contact Info
  • Coverage Class Amounts
  • Funding Type Preference (Funded or Scheduled)
  • Employee List (not required for sign-up, but necessary before claims processing)

In addition, you'll 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'll review and complete the setup of your account. You'll receive an invoice for the enrollment fees and, if applicable, your pre-funding amount. After paying the fees and submitting your employee list, your employees will receive a welcome email with instructions for setting up their account and submitting claims. Each employee will have their own account linked to your company, where they can submit claims and view their claim history. Email addresses are the primary method for accessing the site.

For Pre-Funded Companies:

After setup is complete and welcome packages are delivered, your employees can start submitting claims. You'll 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 processed when payment is made.

Are you ready to enrol? Get started today!
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