Cost Plus/Private Health Services

Cost Plus is a tax-effective way to provide coverage for medical expenses that are not covered or are only partially covered by your group plan. Adding coverage to your formal plan for these expenses may be cost prohibitive but covering them on a one-off basis may be more feasible.

Here is how it works...

The employee completes the attached claim form and attaches the original receipts and/or the explanation of benefits returned by the insurance company. This is submitted to the administrator in your office for payment.

Your company issues a cheque to GMS Insurance Inc. in the amount of the claim plus taxes and an administration fee(details are below).

GMS Insurance Inc. issues a cheque to the claimant (employee) in the amount of the original claim.

In doing this, the claim becomes a tax-deductible expense for the company and a non-taxable benefit for the employee - a win-win situation.

For example...

An employee has a dental claim for $1,000 that is not eligible under the group plan. He submits the claim form and receipts to the administrator. The administrator issues GMS a cheque for $1,177.00.

GMS issues a cheque to the employee for $1,000.

* The maximum of $200 applies only to the Administration Fee
* Each tax/fee calculation is independent of the other taxes/fees and is based on the original claim amount.