Maximizing Your Group Insurance Coverage with Cost Plus

All group insurance plans have limitations, but the question becomes how do you make the most of your benefit dollars and maximize the value you provide to your employees, while providing the most cost-effective solution for you as an employer?

Toronto Group Insurance broker Joel Cadesky believes Cost Plus can provide an effective solution.

Let’s look at a traditional group insurance plan, which can have limitations on certain benefits, such as paramedical services, which may be capped at $500 a year per employee. Meanwhile, eyeglasses may be capped at $100 a year, and dental may be capped at $1,500 a year per employee, as an example.

Cost Plus can get amounts above these caps covered for employees.

How Does it Work?

Typically, the employer cuts a cheque to the insurance company for the amount of the claim, plus a 10 per cent administration fee (to a maximum), plus a 2 per cent premium tax, plus an 8 per cent sales tax in Ontario. The insurance company than sends back a cheque to the employee for the claim amount.


1. The employee receives the cheque tax-free
2. The amount the employer cuts a cheque for is a tax deduction (your accountant will be able to tell you more)
3. It provides extra protection for certain weak spots within a benefit plan
4. Cost Plus specifically has a loyalty advantage for the employer.

Revenue Canada takes the position that this plan has to be offered to all employees.

For more details on group insurance in Canada, please contact us at 1.866.899.4849 or visit our Group Insurance Quote Page.

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