What is the average cost of health insurance in Canada?

Key takeaways

While government healthcare covers many essential medical services, it does not always cover needs like dentalcare, eyecare and prescription drugs
Many Canadians have supplementary health insurance coverage to help cover these expenses
Costs can vary based on factors like age, medical history and how much coverage is needed

Is health insurance really free in Canada?

It’s important to remember that many health care needs, including prescription drugs and dental care, are not covered for all Canadians.

There are also related medical services, like physiotherapy or mental health providers, that are not covered under government healthcare for many Canadians.

For this reason, many Canadians have supplementary private health insurance coverage. This may be provided by their employer, who helps to cover some of the cost, or they may pay for an individual plan by themselves.

How much does private health insurance cost in Canada?

This cost will vary based on several factors, including your age, how much coverage you’re looking for, and, in some cases, your medical history.

What impacts the cost of private health insurance?

You may encounter several costs while using private health insurance.

The most obvious one is your premium, which is the amount you pay for your coverage.

You may also encounter a deductible – the amount you must pay before your coverage kicks in – and you may have to pay an additional amount out-of-pocket in cases when your coverage doesn’t cover the full cost of a service or procedure.

What can you expect to pay for health insurance?

This depends on your specific situation, but here are a few examples using Canada Life’s Freedom to ChooseTM health and dental insurance.

When you’re comparing prices, it’s also important to remember that not all plans are created equal, and different providers will include different kinds and levels of coverage in their offering. Just because a plan is the cheapest, it doesn’t necessarily mean it provides the best value – or is the best fit for your specific situation.

1) Jamar

Jamar is aged 25. He’s single, and has no-pre existing conditions. He’s looking for basic coverage that includes dentalcare and trips to a massage therapist. He lives in Ontario.

Select, which includes 70 percent of the cost of routine dental services – checkups, cleanings, fillings, oral surgeries – up to a maximum of $350 per person per calendar year and $300 per category of practitioner per calendar year to spend on services like a massage therapist:

$80 per month

Select plus, which includes 80 percent of the cost of routine dental services up to a maximum of $750 per person per calendar year and $400 per category of practitioner per calendar year to spend on services like massage therapy:

$139 per month

2) Will and family

Will is 40. He’s married to Chen, who is 50, and they have two kids aged 3 and 5. They’re looking for a plan with good coverage for vision care and prescription drugs. They live in Manitoba.

This assumes they don’t have any pre-existing conditions that might be excluded from coverage or impact the price they’ll pay.

Select, which includes 70 percent of the costs of medication you’re prescribed, up to $500 per person per calendar year and $150 to spend every 2 years on lenses, frames or laser surgery, plus $75 for an eye exam every 2 years:

$309 per month

Select elite without dental, which includes prescription drug coverage where you are 90 percent reimbursed for the first $10,000 in eligible claims and fully reimbursed for the balance of the $250,000 maximum. It also includes $250 to spend every 2 years on lenses, frames or laser surgery, plus $75 for an eye exam every 2 years:

$449 per month

3) Denise and her husband

Denise and Karim are both retirees aged 60. They both have pre-existing medical conditions, and they’re looking for excellent prescription drug coverage. They live in New Brunswick.

Denise, who will be the primary plan member, is also just about to retire and leave her workplace’s benefits plan, meaning she’s eligible for our Guaranteed plans as well as our Select plans.
Guaranteed elite, which includes 90 percent of up to $2400 per person per calendar year for prescription drugs :

$574 per month

Guaranteed plus, which includes all of a prescription drug’s cost, up to $1500 per person per calendar year if they go paper-based:

$427 per month

Select with assured acceptance, which includes 70 percent of the costs of medication you’re prescribed, up to $500 per person per calendar year:

$294 per month

What's next?

If you have supplementary health insurance through your workplace or another group plan, check to see which health care expenses might be covered
If you don’t have coverage through work or another group, check out an individual plan like Canada Life’s Freedom to Choose health and dental insurance

The information provided is based on current laws, regulations and other rules applicable to Canadian residents and our current contracts and pricing. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.

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