Extended health and dental tax savings from Cost-Plus

Doctors of BC offers the Health Benefits Trust Fund (HBTF), an extended health and dental plan, to members and their families. HBTF offers high reimbursement levels and generous maximums. However, likely not all of members’ medical and dental expenses are reimbursed through the insurance plan. Co-payments, deductibles, and high usage beyond the stated maximums mean some out-of-pocket cost for members. The Cost-Plus plan provides members a tax-effective method to pay for these out-of-pocket costs.

Cost-Plus is a self-insured plan that allows physicians to tax-deduct eligible health and dental expenses for themselves, their dependents, and their employees, if they are not reimbursed by the HBTF plan. As a self-insured plan, there are no monthly premiums for Cost-Plus. The physician-employer designates an annual dollar limit for eligible expenses claimable for themselves and their family, and each employee enrolled in the plan. The annual limit is determined by CRA guidelines (number of dependents, including physician x $2500 – annual plan premium). When expenses are submitted through Cost-Plus, an administrative fee of 7% (up to $250) is applied. Doctors of BC transfers the total sum from your business bank account to your personal bank account. Essentially, your business has now paid for what was previously a personally paid expense. CRA permits you to claim this amount as a tax-deductible business expense, saving you up to 40% by avoiding unnecessary personal tax. 

If you have HBTF and do not yet have Cost-Plus, you can enrol during the annual open enrolment period, October–November. Cost-Plus is a feature of the HBTF and is not available as a standalone plan. Speak to a Doctors of BC insurance advisor to learn if Cost-Plus is right for you. As with all plans involving tax planning, we recommend members consult with their accountant before implementing Cost-Plus. 

For more information, visit doctorsofbc.ca/insurance.
—Julie Kwan
Business Development Manager, Insurance

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