Thinking about health insurance?
There’s lots to think about when it comes to being your own boss, from finding work to filing taxes and just about everything in between. Another important thing that shouldn’t be overlooked is taking care of your well-being – and that includes having a plan in place to pay for medical care.
With personal insurance, you can apply for health and dental benefits to suit your needs and budget to lower your out-of-pocket expenses.
What kind of coverage is available?
There are 3 healthcare options available in Canada:
- Medicare (Canada’s publicly funded health care system)
- Workplace benefits
- Personal health and dental insurance
If you’re self-employed and therefore not covered by a workplace plan, you’ll need to cover the cost of medical care using a combination of options 1 and 3.
Depending on where you live, you may have some coverage provided by your province or territory. However, the extent of this coverage will vary depending on where you live. For example, in Manitoba, you can receive coverage for up to 7 chiropractic visits per year. In Ontario, chiropractic treatment is not covered by the Ontario Health Insurance Plan (OHIP), meaning you’ll have to pay for this treatment yourself.
A private plan can provide coverage that fills the gap between what’s covered by a provincial plan and what you pay for yourself. You can select a plan, pay a monthly premium (which may be tax deductible), and can receive coverage for treatments such as:
- Vision care
- Dental care
- Prescription drug coverage
- Travel insurance and out-of-country medical expenses
- Private hospital rooms
- Paramedical expenses
This can not only help cover the costs of routine healthcare, but can be especially helpful if you’re in an accident or become sick and need treatment unexpectedly.
“Aubrey just started their dream job at a tech start up, but it’s missing one thing: workplace benefits. Aubrey is young, mid-20s and proactive about their physical and mental wellness and wants to be able to keep up with routine things like going to the dentist, contact lenses and therapy, and get help with any other future costs their provincial healthcare doesn’t cover.
That’s why Aubrey chose Select, our base Freedom to Choose health and dental insurance plan. It offers 70% reimbursement for their prescription drugs, $300 each year for paramedical services like psychologists, with a per visit maximum of $30. It also includes 70% reimbursement for regular dental services like cleanings, up to $350 a year.”
What kind of coverage do you need?
The kind of coverage will depend on factors such your budget, if you plan to be self-employed for the long- or short-term, and whether you have any pre-existing conditions or ongoing medical requirements. You might also want to think about the type of work you do, and whether it’s high-risk or leaves you in need of specialized coverage.
The best way to find out what coverage you’d need is to get a quote online. You’ll be able to look at options based on your individual needs, such as whether you’re looking for basic coverage on a budget, or more comprehensive coverage that can cover a wide range of medical care and costs.
You can find out more about your coverage options by getting a quote online or speaking to an advisor.
The cost of health and dental benefits
When it comes to choosing your health and dental benefits plan, your monthly premiums will vary based on factors such as your benefits provider, the coverage you choose, and whether you add your spouse or dependants to your coverage. These monthly payments can not only add up to less than you’d pay out-of-pocket in the long run, but they may also provide some tax benefits too.
Are health insurance premiums tax deductible?
Yes, eligible medical expenses can be claimed on Lines 33099 and 33199 of your tax return. The Medical Expense Tax CreditOpens a new website in a new window is a non-refundable credit you might be able to claim to reduce the money you’ve paid in healthcare expenses. You may also be able to claim eligible expenses for your spouse or common-law partner. For more info, speak with your accountant when it’s time to file, or visit the government website to see a list of eligible medical expensesOpens a new website in a new window you could claim.