CostPlus

For claims not covered under current plan definitions, a company would pay for the cost of the claim plus an administration fee.

This is a tax efficient method of reimbursement for company executives and key employees when the terms of a plan do not cover eligible medical claims. Using pre-tax corporate dollars, the expense is 100% eligible as a tax deduction.

To be considered a Private Health Services Plan (PHSP) and maintain tax deductibility by CRA a Cost Plus plan must be a part of the Benefit contract. To avoid the suggestion of unfair treatment, eligible participants should be defined by class and specific expenses should be clearly defined.