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COST EFFECTIVE BENEFIT PLAN
 
Cost Efficient Benefit Plan for Small Business

HEALTH AND DENTAL BENEFITS
FOR SMALL BUSINESS OWNERS
"ONLY"

FOR THE BUSINESS

  • 100% Tax Deductible
  • No Premiums
  • Revenue Canada Back-up and Support
  • You Decide Range of Options
  • Fast Claims Processing

FOR THE OWNER

  • 100% Coverage of all Health and Dental Costs
  • Tax Free Benefit
  • Can Supplement Existing Coverage
  • You Decide Range of Options
  • Fast Claims Processing

"Let Me Explain How It Works"




Contact Ogden Financial Planners Ltd.
for more information about this coverage.


 
Explanation of "Cost Plus"
MISSION STATEMENT

We will strive to provide for you, our clients and friends, cost efficient solutions for today's changing markets, by working side by side with our "Cost Plus" Benefit Plan to provide the best level of customer service available.

WHAT IS COST PLUS AND HOW DOES IT FIT INTO A GROUP BENEFIT PLAN?

"Cost Plus" is a means of providing tax-free benefits to an employer or an employee if the situation arises. The company incurs an eligible medical expense (under Revenue Canada Guidelines).

FOR EXAMPLE:
A Business Owner purchases glasses for himself and his family at a cost of $1000 out of his own pocket (i.e. after tax dollars). Depending on his personal marginal tax rate, (at 40%) he would have had to make approximately $1675 in gross earnings to buy the glasses.

If the Business Owner wanted to pay for the glasses through his company, he could use "Cost Plus" to make it an eligible deduction for the company.
 
THIS IS HOW IT WORKS:
Cost of glasses
$ 1,000.00
Administration fee of 8%
80.00
Plus GST on admin. fee
5.60
Paid to: Cost Efficient Benefit Plan Ltd.
$ 1,085.60
Cost Efficient Benefit Plan Ltd. would then pay the Business Owner a personal cheque of $1000 for the glasses he purchased and also issue a receipt for $1085.60 to the company, that is fully deductible.

The advantage for the Business Owner is, he had a medical expense taken care of, excluding the high cost of personal income Tax from Revenue Canada. His company has taken the advantage of this total amount paid to become an eligible business deduction. Win/Win Situation.
This program is also eligible for any employee.
 
Contact Ogden Financial Planners Ltd. for more information about this coverage.
 
Tax Regulations
HOW IS IT ELIGIBLE UNDER THE TAX REGULATIONS?

Under tax regulations, incorporated businesses can use the services of a third party administrator to "Cost Plus" eligible medical expenses.

TERMS:
1) COVERAGE
The plan covers, for the people listed on the enrollment form, all hospital, medical and dental expenses that qualify as such expenses under the Income Tax Act of Canada "ITA" and are not prohibited by law.
2) CLAIM APPROVAL AND SUBMISSION
The Administrator, on receipt of a claim from the employee of the Policy Holder, shall determine whether the claim is for an expense covered by the plan.
3) CLAIMS AND FEE PAYMENT
Upon receipt of an eligible claim, the Administrator shall issue payment for the claim by cheque directly to the individual listed on the enrollment form and shall provide notification of such payment to the Policy Holder if they are not the same. In return the Policy Holder shall issue a cheque for all claims listed plus the administration fees. In essence, switching cheques.
4) REPORTING
Within 30 days of the end of each calendar year or within 30 days of a requested year end, the Administrator shall provide a report, effective as of December 31 or at the date requested which will reconcile the Claims received and paid.
5) TAX TREATMENT
The characterization of the Claims paid under the ITA is a matter to be assessed by the Policy Holder and the Administrator.
6) GENERAL
This agreement is governed by the laws in force in Alberta. If any provisions of this agreement is changed by the Federal or Provincial Government; this will affect the agreement of this form.
Contact Ogden Financial Planners Ltd. for more information about this coverage.
 
Personal Work Sheet (PDF document opens in new window)
 
Enrollment Form (PDF document opens in new window)
 
Alberta Blue Cross Health Benefits
Alberta Blue Cross Request Information or an Application
Visit the Alberta Blue Cross web site (opens in new window) for information on health benefit coverage.
 
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