Entrepreneurship & Small Business

Health Insurance for Self Employed (Business Incorporation)

  • Last Updated:
  • Aug 1st, 2019 7:59 am
[OP]
Newbie
Jul 18, 2011
20 posts
1 upvote

Health Insurance for Self Employed (Business Incorporation)

Can anyone please recommend good Health Insurance plan for Self Employed (Business Incorporated)

Has 2 Adults and 2 Kids under 10.

Location - Toronto, Ontario

Thank you All

Any and all replies will be appreciated
23 replies
Deal Guru
Aug 2, 2010
14312 posts
4181 upvotes
Here 'n There
There is no such thing. With only 4 plan members the costs cannot be spread in order to yield a profit for the insurance company. Your only option is brockhealth.ca which is basically a mechanism that allows you to deduct medical costs from corp income, thereby providing some tax relief but that's it.

I assume you want coverage for things like dental, optical, prescription drugs, private hospital room etc.? Most of the rest is covered by OHIP.
Deal Addict
Feb 25, 2007
1183 posts
613 upvotes
Ottawa
Most private plans in Canada pay out only in the 70-75% range of the premiums they raise overall, the rest being admin costs and profit.
So really the only reason they are worth it *on average* is the tax benefit.

In addition, private plans do protect you from semi-catastrophic risks, though this is limited due to what OHIP covers. Self-selection means they can't really do this for incorporated small businesses.
Finally, they help employees who are used to regular income and can't/won't/aren't used to creating a rainy day fund smooth out costs over time, but as a small business owner you are presumably used to irregular income streams and saving for a rainy day, so this isn't worth it.

Bottom line is that Brock Health's 95% payout ratio, flat pass through with no risk spreading, is as good as you're going to get, and it's pretty darn good.

If you do value the risk spreading/protection from large risks, or the smoothing out of costs, you may be able to get that as an individual (not through your business), either as a dependent on your spouse's plan if s/he works, or through a professional organization, alumni network, etc.
Newbie
Feb 7, 2018
24 posts
5 upvotes
There are other plans similar to Brock's out there. Accountable Value Financial Services' is 100% reimbursement back for the medical and 100% expense for the business; the savings is in the taxes.
Deal Guru
Aug 2, 2010
14312 posts
4181 upvotes
Here 'n There
AccountableValueFS wrote:
Nov 23rd, 2018 11:40 am
There are other plans similar to Brock's out there. Accountable Value Financial Services' is 100% reimbursement back for the medical and 100% expense for the business; the savings is in the taxes.
Wrong. It's 95% payout just like Brock. No one works for nothing.

https://accountablevaluefs.com/private- ... ces-plans/
Newbie
Feb 7, 2018
24 posts
5 upvotes
eonibm wrote:
Nov 23rd, 2018 3:30 pm
Wrong. It's 95% payout just like Brock. No one works for nothing.

https://accountablevaluefs.com/private- ... ces-plans/
Sorry but no. You have the numbers/process wrong. The employee gets 100% back. The company gets charged 100% + 5%. That does not equate to a 95% reimbursement. I’ve been doing this for almost 10 years, I know what I’m talking about. It’s a 100% reimbursement. If the employee submits $100, they get $100 back; not $95.00.
Deal Addict
Aug 18, 2004
1203 posts
116 upvotes
Toronto
AccountableValueFS wrote:
Nov 23rd, 2018 4:05 pm
Sorry but no. You have the numbers/process wrong. The employee gets 100% back. The company gets charged 100% + 5%. That does not equate to a 95% reimbursement. I’ve been doing this for almost 10 years, I know what I’m talking about. It’s a 100% reimbursement. If the employee submits $100, they get $100 back; not $95.00.
For the self-employed, (original poster, and many of us) it's 95%... the employee and the corporation are the "same". That equates to a 95% reimbursement to the "end user".

Think for a minute before self-promoting. Makes you look like a jack-ass.
Deal Addict
Aug 18, 2004
1203 posts
116 upvotes
Toronto
eonibm wrote:
Nov 22nd, 2018 10:51 am
There is no such thing.
There actually is, but it's just very costly and often not worth it for most users. Many providers offer it, and if you have any affiliations (professional orgs etc) then it can help bit it's still pricey.
eonibm wrote:
Nov 22nd, 2018 10:51 am
Your only option is brockhealth.ca
Not only option, but certainly a good and recommended one. I use them, and would recommend in a heartbeat. There a handful of providers in this space.. but Brock has been a staple and served many of us well over the years.
Deal Guru
Aug 2, 2010
14312 posts
4181 upvotes
Here 'n There
AccountableValueFS wrote:
Nov 23rd, 2018 4:05 pm
Sorry but no. You have the numbers/process wrong. The employee gets 100% back. The company gets charged 100% + 5%. That does not equate to a 95% reimbursement. I’ve been doing this for almost 10 years, I know what I’m talking about. It’s a 100% reimbursement. If the employee submits $100, they get $100 back; not $95.00.
Exactly my point. It costs a self-employed person 5% as you stated, which in anyone's books who knows basic kindergarten arithmetic results in 95% reimbursment. So, just like Brock Health.
Deal Addict
User avatar
Feb 16, 2004
1506 posts
49 upvotes
York Region
To bump an old thread:
We own a corporation too - 50/50 - hubby and I and our daughter as MY dependent.
Have been using Brock for 3 years now with good success.

Our accountant told us today that since we own 50/50 of our corporation, we should put it as Taxable benefits where before we put it as Corporate Expense.

What is everyone else doing with this Brock Health situation?
Deal Fanatic
Aug 21, 2007
5157 posts
302 upvotes
Markham
edkate wrote:
Apr 3rd, 2019 1:28 pm
To bump an old thread:
We own a corporation too - 50/50 - hubby and I and our daughter as MY dependent.
Have been using Brock for 3 years now with good success.

Our accountant told us today that since we own 50/50 of our corporation, we should put it as Taxable benefits where before we put it as Corporate Expense.

What is everyone else doing with this Brock Health situation?
i think accountant is mistaken, as the whole point of using brock is to get the expense deduction while not having a taxable benefit

truthfully, if employment contracts are structured appropriately, should be able to reimburse medical expense for employees without even having a PHSP plan administrator like brock. See IT 339R2 and IT529
Deal Addict
User avatar
Feb 16, 2004
1506 posts
49 upvotes
York Region
adeel wrote:
Apr 3rd, 2019 4:15 pm
i think accountant is mistaken, as the whole point of using brock is to get the expense deduction while not having a taxable benefit

truthfully, if employment contracts are structured appropriately, should be able to reimburse medical expense for employees without even having a PHSP plan administrator like brock. See IT 339R2 and IT529
I think the whole issue is that i owe 50 % of shares in our corporation and take pay in dividends and also salary . Hubby only gets paid in dividends.
Deal Fanatic
Aug 21, 2007
5157 posts
302 upvotes
Markham
edkate wrote:
Apr 4th, 2019 4:21 pm
I think the whole issue is that i owe 50 % of shares in our corporation and take pay in dividends and also salary . Hubby only gets paid in dividends.
ahhh...benefits are not taxable if received due to employment and not as a shareholder...accountant may be thinking that as your husband is not an employee, he should report as a taxable benefit...not sure why that would impact you though
Penalty Box
User avatar
Jun 24, 2015
2585 posts
563 upvotes
Woodbridge, ON
When I was self employed and had my own small business, I needed medical insurance and benefits, this is what I did. I had a PART TIME job that I worked roughly 8 hours per week, mostly on weekends, and that job is what allowed me to have my dental and health benefits. A lot of people made fun of me for being self employed and working at a grocery store on weekends, when now they look back, they can understand what I did and why. sometimes you gotta do the things u dont like to succeed in life
Hi
Newbie
Dec 29, 2018
39 posts
39 upvotes
Can anyone give me referral name to get registration fee waived off for accountablevaluefs.

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