Health & Dental Plans
Your Options
Government benefits do not cover anything except basic health costs. They cover hospital costs, visits to your doctor and drugs after a certain annual deductible is met. It is your responsibility to look after yourself and your family for those expenses not covered by the government. If you are a member of a company group insurance plan, you may already have those additional benefits – but read your employee benefit booklet to be sure.
If your employer does not provide group insurance benefits or if you are a small business owner, there are benefit strategies that can help to cover or at least reduce the costs of the additional medical expenses that can occur.
As an employee, you can purchase coverage for just you and your family under an individual health & dental insurance plan. No medical info is required, but pre-existing drugs (that you are currently using) will be excluded from the coverage. The plans are meant to be kept for the long term and are not just temporary cost reimbursement plans, even though they only require monthly premiums. Drugs, medical services and travel insurance are included as well as basic dental coverage – but remember that the premium you pay is the full amount. When you were an employee, the benefit plan that you paid for was actually paid 50% by your employer. When you buy a plan for just your family you will be paying for the full 100% premium. Ask your insurance broker to explain why this is still a great benefit to you.
As a business owner, you have both the option of either an insurance plan, as above or under a group insurance plan (when you have employees), or a special tax deductible benefit plan (’PHSP’) that allows your business to pay for all the medical costs, fully tax deduct them and then allow you to receive the benefits totally tax free.
Where Do I Start
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Let us know the following:
Are you an employee, self employed or a business owner?
If you are a business owner, how many employees do you have?
If you are self-employed, what are the costs that you are most concerned about covering?
Does your business only have family members working in it?
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Collect the information giving your (and each employee, if any)
Age
Sex
Are you single, couple or family?
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Are you (or your employees) currently taking any prescription medication?
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What medical/ dental costs are you looking to have covered?
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Send in the quote request – or just an email – asking for costs and alternative plans<<Quote request >>
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Receive the quote showing the costs, review and call us top ask for more information and explanation.
Government Benefits
Government Health Benefits
Medical Services Plan
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Covers hospital, doctor visits, laboratory tests (x-rays, MRI’s)
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Requires a monthly premium to be paid
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Is a requirement as a citizen of the province of BC
Pharmacare
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Drugs only - and only for amounts over the annual family deductible (see chart)
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All drug insurance plans require you to be a member of Pharmacare.
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There is no premium required – it is ‘paid for’ through your taxes – but you must ‘register’ with the province to have this benefit.
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See Chart: >>
What is Not covered by government medical plans
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Drugs beneath the deductible Pharmacare limit
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Drugs not ‘approved’ for MSP /Pharmacare (ie. non-formulary)
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Dental expenses
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Chiropractors
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Naturopaths, Acupuncturists
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Medical travel costs
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What can I tax deduct?
All Canadian citizens have the right to apply for the Medical Tax Credit (MTC) on their personal tax returns. It applies to all medical expenses incurred but not reimbursed by any other plan. It is limited, has a large deductible and results in only a small tax deduction. Individual Health & Dental plan premiums are deductible to business owners only as are the 100% deductions available. In all cases, the benefits paid for by the plans are tax free to the user.
Medical Tax Credit
Take your medical expenses, less 3% of your annual income (to a maximum of $2,024 for the 2011 year) and then multiply that remaining amount by 15%. This gives you the ‘Medical Tax Credit’ which is what you can use to reduce your current year’s personal taxes that you owe. It cannot be transferred to the next year.
Group Health & Dental Plans
Where there are enough employees to have a group employee plan, the premiums paid by the employer for the health & dental benefits are 100% deductible to the business. The life insurance and Long Term Disability (LTD) premiums should be paid by the employees. The premiums paid by the employee are not tax deductible to the employee. Where the employees are paying a portion of the health & dental premiums, those premiums are also not tax deductible to the employee.
Individual Health & Dental Plans
If an employee purchases one of these insured plans, the premiums are not tax deductible to the employee.
If self employed, the premiums are tax deductible to the business owner up to certain limits.
Tax Deductible Health Plans (Private Health Services Plans)
As only business owners can purchase a PHSP, the costs of the plan are all 100% tax deductible against their business income. Sole Proprietors have a more limited amount of deductibility available to them whereas Corporate business owners could have up to $15,000 per employee annual tax deduction. Ask to have the rules and availability explained to you further.