Put Cost Plus to Work for You and Your Company
- Cover items outside your current group insurance plan
- Save tax dollars for you and your company
- Take advantage of non-taxable employee benefits
- Deduct Cost Plus charges just like group insurance premiums
What is Cost Plus?
Cost Plus is a proven, tax-effective means of covering Health, Dental and Vision Care items not eligible under your Group Insurance Plan. Some of the most common uses include amounts over any limits in your current group plan, and specific treatments such as orthodontic dental work. The program covers all supplies and services considered eligible medical expenses under the Canadian Income Tax Act.
For the business, Cost Plus charges are treated like group insurance premium, as an eligible business expense. Cost Plus benefits are not taxable in the hands of the individuals who receive them (except in Quebec where provincial taxes apply).
How Does it Work?
Expenses not covered under your regular Extended Health or Dental Group Plan may be sent to the Plan Administrator with this Cost Plus form along with a cheque for the amount of the claim plus a small administration fee and applicable taxes. Your firm writes off the entire amount as a tax-deductible employee benefit expense. The Plan pays the claim, sending payment to the employee or the service provider.
Claim payments over $5,000 will be held for a short period of time in order to allow your firm’s cheque to clear our bank. There is no hold period required if your firm’s cheque is certified. All claims over $50,000 must be accompanied by a certified cheque.
If your firm has an Extended Health benefit with the Chambers Plan, the administration fee charged is 5% of the claimed health expense up to a maximum of $125 per claim.
If your firm does not have an Extended Health benefit, the administration fee is 12% of the claimed health expense (no maximum). If your firm has a Dental benefit with the Chambers Plan, the administration fee charged is 5% of the claimed dental expense up to a maximum of $125 per claim. Ifyour firm does not have a Dental benefit, the administration fee is 12% of the claimed dental expense (no maximum).
Cost Plus claims must be made while the firm’s coverage is in effect. Once Chambers Plan coverage has terminated, claims will not be processed regardless of the service dates being claimed.
All claims received on a cost plus claim form are assumed to be ineligible under your regular benefit. Please ensure that benefits have been maximized under the regular plan before submitting a cost plus claim.