Entrepreneurship & Small Business

Health Insurance for Self Employed (Sole Proprietorship)

  • Last Updated:
  • Oct 23rd, 2019 11:47 am
[OP]
Member
User avatar
Oct 26, 2015
216 posts
66 upvotes
Calgary, AB

Health Insurance for Self Employed (Sole Proprietorship)

Currently self employed (no corporation, not looking to set up one). Husband is leaving his company at end of year.

Any good plan you would recommend? I am looking to get dental as well. Family of 3 (4 in 2020).

Thanks!
2 replies
Deal Fanatic
Jan 21, 2018
7839 posts
8537 upvotes
Vancouver
Likely nobody will offer you a group benefits plan, even through an industry association. Don't waste your time.

You should look into two options:

1. A pared-down personal benefits plan. It's not going to be as good as a corporate group plan, because those rely on sharing the burden with a substantial portion of employees who pay for benefits but make little use of them.

2. A corporate Private Health Services Plan (PHSP), for example: https://www.brockhealth.ca/. The PHSP is basically pay-your-own-way. It allows the same type of claims as a group health plan. You will pay for everything, but the advantage is that it is a business expense to the company with no deductible, and therefore tax-free. If you paid for it personally, it would be subject to a large medical expenses deductible on your taxes, and therefore not tax-free. The CRA requires that you follow the rules for a PHSP regarding what is claimed and how it is documented, and they often scrutinize the first-year claims for a sole proprietorship very closely, so it helps to have an expert company manage the claims professionally in return for a small commission (5%).
Newbie
Oct 18, 2019
68 posts
65 upvotes
You may wish to check out the offerings from sbis.ca for coverage (if not cost) similar to a typical group benefits plan. I have used them in the past when I was a sole proprietor with coverage provided through Green Shield.

I also agree with the PHSP suggestion if it suits your circumstances. This is a current area of research for me and I do not yet have any direct experiences with this type of plan.

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