A Private Health Services Plan is a broad term defined by the Canada Revenue Agency that encompasses any plan — including traditional insurance and Health Spending Accounts — that reimburses medical expenses. Under the Income Tax Act, premiums or contributions to a PHSP are tax-deductible for businesses, and benefits received by individuals are tax-free. For a plan to qualify as a PHSP, it must cover expenses that are eligible medical expenses under the Act. Traditional employer group benefits, individual health insurance policies, and Health Spending Accounts all qualify as PHSPs when structured correctly. Self-employed individuals without incorporation can deduct PHSP premiums (including private health insurance premiums) on their personal tax return, subject to certain conditions and limitations.