Canadian Income Tax Act allows businesses to reimburse an
reasonable medical expenses which are tax deductible to
the business and are
non-taxable benefits to the employee.
a "cost plus plan" an employer contracts
with the trusteed plan or an insurance company for the
provisions of indemnification employees' claims on defined
risks under the plan.
employer promises to reimburse the cost of such claims plus
an administration fee to the plan
or insurance company.
contract exists between the employer and the trusteed plan
or insurance company in which the
insurance company agrees to reimburse the employee for claims
on defined risks for so long as the
employer's contract is in good standing.