Sophie

Sophie is a self-employed social media consultant with no employees, and is on track to net $60,000 of income this year. Her husband, Cam, is a salaried heavy-equipment operator. Over the course of the year, Sophie had a dental crown procedure ($950) and visited a naturopathic doctor ($180). Cam had a dental checkup ($150), replaced his glasses ($320), and is taking medical cannabis for occasional migraines ($350).


Their total health and dental costs for the year were $1,950. How can they reduce their costs?

Option 1: Submit receipts to an accountant.

Sophie and Cam submit all their health and dental receipts to their accountant, but only receive a $32 tax credit when they file their tax return.

Option 2: Use a traditional health and dental benefits plan with monthly premiums.

Sophie is 35 and Cam is 37, so their monthly premiums for a decent health and dental benefits plan is $195/month, or $2,340/year. They submit their health and dental receipts to the plan provider and receive a reimbursement of $820. They also receive a tax refund of $660 for the monthly premiums they paid.

Their benefits plan does not cover medical cannabis, so they did not receive any reimbursement for those expenses.


Sophie and Cam paid $2,340 for their health and dental benefits plan, but only received $1,480 of benefits, so they lost money by paying more into their plan than it was worth.

Option 3: Use the Entrepreneur Health Flex Plan.

Sophie and Cam submit their health and dental receipts to their Entrepreneur Health Flex Plan provider, convert their expenses into a $2,334 tax deduction, and receive a tax refund of $658.

This option gives them the most savings!

Janice

Janice is a self-employed business coach who will net $100,000 of income this year. Janice is married to Matt, and they have two children, Brenda and Jason. Brenda will need braces later this year, at a cost of $3,650. Matt has employee health benefits, but unfortunately, they only cover basic dental services, not braces, so they would be out-of-pocket for the entire cost of the braces.


Janice decides to enroll in the Entrepreneur Health Flex Plan to cover the entire cost of the braces, and will save $954 in total.

Jeff

Jeff has an incorporated business as an HR consultant, and will net $150,000 of income this year. Jeff is married to Susan. They have been trying to conceive naturally for some time now and, after consulting with a fertility specialist, have decided to use in-vitro fertilization (IVF). The fertility drugs will cost $5,000, one cycle of IVF will cost $14,000, and the fertility acupuncture will cost $330, for a total of $19,330.


Neither their provincial health plan or their private health benefits plan will cover any of their fertility treatment expenses, so Jeff enrolls in the Entrepreneur Health Flex Plan, and will save $5,898 in total.

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