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Products > Group Benefits > Health & Dental > Cost Plus

Cost Plus Plans

The Cost Plus Account structure is the default arrangement. A Cost Plus Account may be set up to handle ongoing Cost Plus arrangements (e.g., all amounts above plan maximum for executives).

Acceptance of the request is subject to approval from the Underwriting department. If approved, a Cost Plus Benefit Administration Agreement is written up detailing the agreement for the plan sponsor.

Unique Cost Plus
Arrangements are available in addition to the standard account arrangement to handle “one off” requests and exceptions. Advance agreement is not needed for the plan sponsor to request a Unique Cost Plus settlement.

Canada Revenue Agency (CRA) guidelines indicate that in order for a Cost Plus claim to be a tax deduction as a business expense for the plan sponsor, and non-taxable to the plan member, it must be set up as a Private Health Services Plan (PHSP). In order to be a PHSP there must be a plan of insurance in place. Thus, Unique or Ad-hoc Cost Plus, which is paid outside of any insurance plan, does not meet the definition of a PHSP. Therefore, a strict interpretation of the guidelines would indicate that in order for a Cost Plus claim to be eligible as PHSP it should be paid under a Cost Plus Account Plan defined in advance of the claim. Cost Plus Accounts are Manulife’s recommended Cost Plus product.

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