Private health services plan (PHSP)
The CRA structure that makes an HSA tax-effective.
A private health services plan is an arrangement meeting Canada Revenue Agency requirements such that employer contributions are generally deductible and reimbursements are generally not taxable to the employee.
Health spending accounts depend on qualifying as a PHSP. An arrangement that functions as a salary substitute, or allows unused amounts to be taken as cash, risks failing to qualify.
What this means for a BC plan
This is the technical foundation under any BC health spending account. Structure it with your accountant before implementing rather than correcting it after a CRA review.
Related terms
Where this comes up
HSA vs traditional plan · All glossary terms · Ask an advisor directly
General information only, not advice for your specific plan. See our legal and licensing disclosures.