If you’re a self-employed Atlantic Canadian, you don’t have the perk of a company benefits plan. It’s up to you to pay for health care expenses. Some medical services and expenses are covered by your provincial health insurance card (MSI in Nova Scotia, PEI Health Card, Medicare Card in New Brunswick, and Medical Care Plan in Newfoundland.) However, for things like dental hygiene, eye glasses for the kids, or chiropractor appointments, you’re responsible for the costs. Unless you take advantage of private health insurance.
Private Health Insurance for the Self-Employed
When you make your living as a freelancer or independent consultant, often if you can’t work, you don’t earn. What impact would a medical emergency have on your ability to pay monthly bills and look after your family? A serious illness or injury can also be a serious financial blow, especially if it lasts months or years. As mentioned, without private health insurance, you’re responsible for everything that isn’t covered by your public provincial medical card.
Purchasing a health insurance plan to protect you and your family enables you concentrate on growing your business, not worrying about how to budget for routine health care costs and the event of a medical emergency.
Health Plan Options for the Self-Employed
There are a few different types of health insurance plans for self-employed folks in Atlantic Canada.
- Personal health insurance is the most commonplace. Sometimes referred to as private health insurance, these policies are customizable for different budgets, families, and health care services.
- Group health insurance is an option if you can take advantage of your spouse’s plan from her employer. Ask if their group health plan insurance can be extended to cover you.
- An Association Health Insurance Plan (AHP) is one that is offered by trade associations and professional groups like a Chamber of Commerce to their membership. When many members join their buying power, it enables the association to provide comprehensive group health insurance benefits, similar to what you might find from an employer. If you’re part of such an association, look into this option (or consider joining one); the health insurance plans can be less expensive than private health insurance (They may have more stringent eligibility requirements though.)
What is the Best Self-Employed Health Insurance for You?
Picking a self-employed health insurance plan can be a balancing act of monthly budget and anticipated health care needs.
- What health care services do you use regularly, and how often? These include things like dentist, eye care, and physiotherapy to name a few.
- What monthly premium can you manage comfortably? Depending on the plan you choose, the health care costs may only be covered 70 or 80%, so factor in these expenses as well.
- Do you have a medical condition? Some plans don’t cover some pre-existing conditions. Tell the health insurance company the situation so you know exactly what you’re be covered for.
- How often to you travel out of province? Health insurance plans can include travel benefits as well.
- Do you take prescription medication? Ask if their cost can be covered by the plan.
- Are there medical specialists or preferred doctors that you want to continue to receive care from?
There a many factors and considerations – and the details vary between insurance providers. Take the time to read the policy carefully so you can choose the health insurance that’s right for you.
Self-Employed Disability Insurance
In addition to a basic health insurance plan, you may want to consider disability insurance if you are self-employed. If you became unable to work because of an illness or injury, this type of insurance gives you financial support. It can help with basic living expenses like utilities, rent or mortgage, as well as medical expenses you incur for treatments, specialists, tests, and ongoing rehabilitation.
Aspects of Disability Insurance
- Cost: what monthly premium can you afford, in addition to your health insurance plan?
- Do you need to be covered for both short-term and long-term disabilities?
- How much are your current living expenses that will need to be paid each month?
- Do you have savings that can carry you until disability coverage comes into effect?
- Similar to health insurance, do you have pre-existing healthcare conditions?
Self-Employed Health Insurance Premiums are Tax Deductible
We’ve talked a lot about monthly premiums and financial impacts. The good news for self-employed individuals is that in Canada, your monthly health insurance plan premiums are tax deductible. Be sure to claim them as a business expense using Form T2125, Statement of Business or Professional Activities, and lessen your taxes owing.
Other Ways to Save Money on Health Insurance
Claiming your monthly premiums as a tax deduction isn’t the only way to save money. Follow this advice to get the best value from your health insurance.
- Use your benefits. If you coverage includes visits to the chiropractor or other health care professionals, as well as screenings and tests, then take advantage. Look after yourself. Not only does your body or mind get the value, but you may prevent future injuries or illness.
- Ask about a high-deductible plan with a health savings account (HSA), This type of plans allows you to save money on taxes and pay for health care costs with tax-free dollars.
- It’s worth it to compare. Request quotes from a couple of insurance companies so you can find the best deal (and someone who’s great to deal with.)
If You’re Currently on a Group Plan
Are you new to self-employment? If you are already on a group health insurance plan from a previous employer, there are some things to consider as you transition from one plan to another.
- What does your group health insurance plan cover you for now? And to what level? Is it 80% for dentist visits? $500 per year for massage therapy? Consider what you have and how much of it you use now, and will want to continue to use.
- For the self-employed health insurance there may be wait periods for some services, such as the dentist. If you have to wait 6 months from the date your new coverage starts before you will be covered, you may want to book your dental hygiene visit while you are still covered by the group plan.
- Moving from a group health insurance plan to a self-employed one isn’t automatic. You’ll want to avoid a period where you have no coverage – even if it’s for a few days.
Protect Your Business, Yourself and Your Future with Self-Employed Health Insurance
A self-employed health insurance policy is an essential component for running your business. After all, it’s about looking after you. Take the time to find the best health insurance plan for your budget and needs. Use your benefits to stay healthy, and enjoy the peace of mind knowing that you’re protected from financial difficulty that an unexpected injury or illness may cause. Read more about our Medavie Blue Cross health insurance plans for Atlantic Canadians. Reach out to us for a quote, or if you have questions.