Entrepreneurship & Small Business

Health Insurance for Self Employed (Business Incorporation)

  • Last Updated:
  • Nov 23rd, 2018 10:47 pm
[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
8 replies
Deal Guru
Aug 2, 2010
13200 posts
3413 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
1126 posts
542 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
4 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
13200 posts
3413 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
4 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
1193 posts
113 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
1193 posts
113 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
13200 posts
3413 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.

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