On May 18, PPI Benefits announced that it had purchased a majority interest in CustomCare, a Private Health Services Plan (PHSP) provider located in Calgary.
Businesses that establish a PHSP can use the plan to reimburse owners and employees for expenses which qualify as medical expenses under the Income Tax Act. These reimbursements are a tax free benefit to the employee and tax deduction for the business. CustomCare currently provides PHSPs to more than 6000 Canadian small businesses, and PPI says the company will continue to operate under its own name as a division of PPI Benefits.
An ideal fit
David Udy, one of the founders of CustomCare, will stay on as a director of the new organization. "We see it as an ideal fit with our existing PPI Benefits group to bring this unique offering to even more firms and their employees," says Udy.
“Unique proprietary solutions with intelligent tax savings have been a hallmark of PPI since the beginning, and we are pleased to carry on that tradition with CustomCare’s first-rate products and easy-to-use technology," adds PPI Benefits president Ed Hofstede.
The value of the transaction was not disclosed.