To get comprehensive health and dental insurance as a self-employed Canadian, you may need to mix both public and private health insurance.
Basic health coverage (e.g., for doctor’s visits) is available through your province or territory, while eligible Canadians may be able to sign up for free or subsidized dental and vision care. You can get more extensive, private health insurance, through a group benefits program or by purchasing a plan through an insurance provider.
Key Takeaways
- Self-employed Canadians may need to purchase private health insurance.
- Public health care in Canada doesn’t cover routine dental work, vision coverage, or prescription drug costs.
- Private insurance can help ensure you have access to routine care and help protect you from large and unexpected costs.
What does public health insurance cover in Canada for self-employed Canadians?
Public health insurance in Canada generally covers medically necessary services – whether that be physician visits, surgeries, emergency hospital visits, or dental surgeries performed in a hospital.
Since public health insurance is provided on a provincial/territorial basis, the specifics of their coverage can vary. To know the most up-to-date and accurate information in your area, it’s best to check your province or territory’s official website:
- Alberta
- British Columbia
- Manitoba
- Newfoundland and Labrador
- New Brunswick
- Northwest Territories
- Nova Scotia
- Nunavut
- Ontario
- Quebec
- Saskatchewan
- Yukon
What does public health insurance not cover?
Public health insurance in Canada is covered by each province or territory, so the specific coverage can vary depending on where you live in Canada. That said, public healthcare usually doesn’t include routine dental check-ups, vision coverage, or prescription drug costs (though Quebec, British Columbia, and the Atlantic provinces may offer partial drug coverage).
The Canadian Dental Care Plan (CDCP) helps eligible Canadians reduce the cost of their dental care, but not everyone is eligible for this program, and it still has some gaps in its coverage. If you're eligible, the CDCP can cover all or a percentage of your dental care costs, mainly depending on your income bracket.
That said, certain alternative health treatments, like massage therapy, chiropractic care, and mental health services, are neglected by public health insurance.
These key areas are where private health and dental insurance can be used to further cover you, especially as a self-employed Canadian with no shared workplace insurance.
What do private health insurance options look like?
You’re probably wondering how much an individual private health insurance plan would cost you – while it’s going to be more than public health care (free), premiums can still be affordable.
A basic individual plan can cost between $60 and $250 per month. Lower-cost plans may only cover essential services, like dental care, while more expensive plans have advanced coverage that includes prescription drugs, professional services and more.
Those numbers are broad estimates, as the actual premiums will depend on numerous details specific to your life. You should also keep in mind that private health insurance can be tax-deductible, so you may get more value than you think.
If you’d like to see a more accurate estimate, you can always get a free quote from an insurance provider – or several different insurance providers, so you can find the best deal for your situation.
PolicyMe offers an extensive selection of health and dental plans to suit your needs. You can choose from 7 different plans to fit your lifestyle and preferences.
- Plenty of different plans
- No medicals required
- Lack of long term disability plans
- No travel insurance plans
- Must have a valid provincial health card
- Age of majority in your province or territory
- 7 different plans to choose from
When does private coverage make sense for self-employed Canadians?
Private coverage makes sense for self-employed Canadians whose government plan leaves some unwanted gaps in coverage. If you have prescriptions, go to the dentist, or could benefit from paramedical support like chiropractic care or massage therapy, private insurance could be a good investment for you.
Crucially, if your estimated medical expenses are higher than a monthly insurance premium (keeping tax deductions in mind), it might be worth it for you to look into private health insurance.
The specific private coverage self-employed Canadians should purchase depends on the province or territory they live in, since provincial public health insurance coverage can vary.
The key to finding the best insurance for your situation is to first take stock of all the areas your public health care doesn’t cover (such as routine dental work), and then decide if it would be worth the money to cover those treatments with a private plan.
As a self-employed worker, you can also factor tax write-offs into your calculations – you may be able to deduct insurance premiums as a business expense, which saves you even more money.
Here are some key pieces of information to consider when checking if private coverage will save you money:
- The gaps in your public health insurance coverage
- The amount of private insurance you’re eligible to deduct from your taxes
- Whether you’re eligible to write insurance off as a business expense
- The likelihood that you'll need many high-cost prescription drugs
- How prepared you want to be for unexpected procedures or prescriptions
- What your private health/dental insurance premium is likely to be
Doing these calculations is much easier with concrete numbers to work with – you can get a free quote from PolicyMe and have a ballpark figure to work with to see if private insurance would be worth it for your situation.
Even if your estimates are close in value or unclear, unexpected costs can be hard to predict and stressful to imagine. If buying more health insurance coverage can ease any health-related stress you carry around, it’s probably worth it.
FAQ
Is private health insurance tax deductible?
Yes, private health insurance premiums are often claimable on your taxes in Canada – though these claims may need to hit a threshold, and can be capped.
Can a private health insurance company drop you?
A private health insurance company can drop you from their coverage if you intentionally give it wrong information, or if you don't make your premium payments.
Can private health insurance be a business expense?
If you're self-employed (as a sole proprietor or partner business owner), you may be able to classify your private health insurance as a business expense, instead of claiming it on your taxes. Check with the CRA to see if your situation is eligible.
Is there anything public health insurance doesn’t cover?
Certain dental services, prescription drugs, cosmetic surgeries, private nursing services, and vision services (like buying glasses) aren't covered by public health insurance. There are other services that public health insurance only covers part of the cost of, such as podiatry.
Who needs private health insurance?
Generally, if you're self-employed, a retiree under 65, a part-time worker with no company insurance, or unemployed, you may need extra health and dental coverage in the form of private insurance.
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