Entrepreneurship & Small Business

Best Health and Dental Insurance for Self-Employed?

  • Last Updated:
  • Feb 12th, 2018 2:18 pm
[OP]
Newbie
Oct 26, 2015
84 posts
13 upvotes
Calgary, AB

Best Health and Dental Insurance for Self-Employed?

Hey,

I am about to leave my FT job in about a month to work from home for a client based in the US. They will be giving me $150-$200 USD a month for my benefits and I was wondering what's the best health and dental insurance? (I will be working FT for this company)

We are a family of 3. My husband has no dental at all just a health spending account. Ideally looking for at least dental. I have used Manulife about 8 years ago and it was good but that was just the 2 of use and I believe I was paying $230 a month for the two of us.

Thanks
1 reply
Deal Addict
Aug 28, 2007
1823 posts
232 upvotes
Calgary
I was wondering when you said your husband "just has a health spending account" but has no dental. He must have a fairly restrictive employer because generally health spending accounts allow the employee to spend their annual amount on any medical services they want.

In your case there are really just two options:

1) a plan similar to what you had at Manulife. Those plans collect a premium up front and then limit what you can claim so they still make a profit. It is calculated over thousands of people so they can lose money on a few large claims yet still make their profit by restricting the claim payouts of the vast majority. Spreading the risk by making many people pay small amounts to cover a few people for large amounts is how insurance works.

2) a health spending account where you don't pay any premiums beforehand but pay for the cost of the health service plus the fixed 5% profit for the plan administrator. For a single family business such as yours, you save by using "before tax" dollars to pay the health costs rather than "after tax" dollars. This will save you about 20-30% of the health costs. There are multiple threads on this forum referencing a low cost provider Brock Health. With your own health spending account, you would naturally create a very generous plan compared to your husband's employer.

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