Cost Plus is a Private Health Services Plan (PHSP) that provides 100% health and dental and vision coverage.

This plan can be a “stand alone” plan or can be used to supplement existing health and dental plans.

Cost Plus is a “pay as you go” plan.  Premiums are not charged monthly but on a “per claim” basis. 

Cost Plus covers all health-related expenses eligible as defined under Subsection 118.2(2) of the Income Tax Act (or IT 519R2). 

The employer sets the level of coverage for the employees.  This can be based on position with the company, length of employment, etc.  This limit can be changed yearly.  There is no statutory limit for the amount of medical/dental expenses that can be reimbursed but must be reasonable in order to be deductible.

You pay for your health and dental expenses as you normally would.  This plan only accepts paid receipts.

Your business then pays Canwest Group Benefits Inc (plan administrator) payment to cover the health and dental expense plus a 10% administration fee (both of which are tax deductible).  Canwest Group Benefits Inc then provides the claimant with a tax free reimbursement of the health and dental expenses incurred.

Employees manage this plan themselves – they decide which health and dental benefits they want to claim through the plan up to their annual maximum.    Once they have used up their annual maximum, claims cannot be carried over to the following year.

There is no enrollment fee or monthly premiums to pay.

Note:  If you are unincorporated and make more than 50% of your income from self-employment, you may still use Cost Plus up to $1,500 for you and your spouse, and up to $750 per child.