How to Save Money on Health Insurance in Canada

Most Canadians get supplemental private health insurance to fill that gap, so they are not forced to pay out-of-pocket for healthcare expenses.

Private health coverage, too, comes at a cost, but it’s typically much lower than what you would have to pay for an uncovered health emergency. Wondering how to save money on health insurance in Canada? Here are some ways to reduce your coverage cost and out-of-pocket medical expenses, without giving up the protection you need.

Key Takeaways

• Choose your plan wisely. A flexible, customizable plan lets you pay only for the coverage modules you need, rather than a fixed bundle.
• Buying coverage while you’re younger and healthier locks in a lower premium before age drives the cost up.
• Comparing providers, or using a Health Spending Account to cover premiums are all great ways to lower your overall cost.
• Shopping around for medical services, choosing generic prescriptions, and staying on top of preventive care can also reduce what you pay out of pocket.

Know What Drives the Cost of Health Insurance in Canada

Your premium cost is based on a few core factors: your age, the province you live in, whether you’re covering just yourself or a family, your health and smoking history, what you choose to cover, and how much coverage you choose.

A plan that includes dental, vision, mental health coverage, and prescription drugs will likely cost more than one that covers only emergency care.

The fastest way to overpay on health insurance is to get a plan that is much broader than you need, or a plan that doesn’t match your requirements. If you rarely see a dentist and don’t take regular medication, a plan weighted heavily toward those categories isn’t doing much for you. If you manage a chronic condition and take regular prescriptions, a leaner plan might leave you exposed to costs a fuller plan would have absorbed.

Similarly, if you need regular vision care, but your insurance provider has an annual limit of $500 for vision coverage, then you may find yourself carrying the bulk of the cost yourself, despite being insured.

How to Save Money on Health Insurance Premiums

The cost of health insurance can vary widely, based on the provider and plan you choose. Here are some tips to lower your health insurance costs in Canada:

Choose a Flexible, Customizable Plan

Not all health insurance works the same way. Some providers sell fixed bundles, where you pay for dental, vision, and drug coverage whether you need all three or not. Others, including our trusted partner Cigna Healthcare, let you build a plan customized to your needs, helping you avoid paying for coverage you may not use. You can choose modules, adjust coverage limits, and avoid duplication of coverage with your employer plans.

If your employer plan already covers dental, for example, you should be able to drop that module and put the savings toward other coverage you need, like prescription drugs or paramedical services.

Want to tailor your coverage to your needs? Explore Cigna Healthcare’s flexible plan options and get a personalised quote online.

Opt for a Higher Deductible

A deductible is the amount you pay out of pocket before your insurance starts reimbursing you. Plans with higher deductibles typically carry lower monthly premiums. For instance, there may be a $750 deductible for dental care. This means if your first visit to a dentist costs $300 and second visit costs $500, insurance will only cover up to $50 for the second visit.

Some plans also have a cap for what percentage of the cost they will cover (also called co-pay or coinsurance). For instance, it may let you pick between 80 percent and 100 percent coverage for vision care.

A higher deductible or co-pay is a trade-off, though. It will mean paying more upfront, but the math may work if you expect to use private insurance regularly. The key is to make sure the deductible or co-pay is within your budget so the upfront payments don’t come as a shock.

Buy Health Coverage Before You Need It

Health insurance gets more expensive as you get older, since insurers price premiums based on the assumption that you’ll need more health care as you age. Buying a plan while you’re younger and in good health locks in a lower premium. In some cases, buying early can also help you avoid the medical underwriting that is required if a health condition has already developed.

While some people delay purchasing health insurance, thinking they’ll wait until they need it, waiting rarely saves money. In fact, it can mean paying more once you eventually do apply.

Compare Health Insurance Providers Before You Buy

Health insurance costs and coverage can vary significantly between providers, even for what looks like a similar plan. Two plans priced close together might differ substantially in their annual maximums, deductibles, waiting periods, or how they handle pre-existing conditions.

Before choosing a plan, compare:

• The deductible and how it affects your initial claims in the year
• Annual maximums for the categories you’ll use, such as prescriptions or dental
• Whether pre-existing conditions are covered, if applicable
• Any waiting periods before specific benefits kick in

Taking the time to compare a few options, get quotes from different providers, and choose only after a holistic comparison.

As you compare providers, look for plans that offer flexibility alongside value. For example, Cigna Healthcare’s customizable plans allow you to tailor coverage based on your individual needs, helping ensure you’re only paying for the benefits that matter most to you.

Use a Health Spending Account (HSA) to Cover Premiums

If you have access to a Health Spending Account (HSA) through your employer, it can be a convenient way to pay for your health insurance premiums. Not all HSA plans cover insurance premiums, so check what your plan covers before submitting an expense claim.

This can be a great use of any leftover amount in your HSA, as any unused HSA amounts lapse at the end of your benefit year.

Note that if an expense, including a premium, has already been reimbursed through your HSA, you cannot also claim it under the Medical Expense Tax Credit.

Claim Your Premiums Through the Medical Expense Tax Credit

If you file tax returns in Canada, the Medical Expense Tax Credit (METC) allows you to offset a portion of what you pay for private health insurance.

The Canada Revenue Agency (CRA) allows you to claim eligible medical expenses you or your spouse or common-law partner paid during the year, and private insurance premiums generally qualify, as long as these costs have not been reimbursed under a different plan (such as your HSA).

You do not get to claim your full premium, though. The CRA only lets you claim the part of your medical expenses that goes above a certain amount. That amount is either $2,834 (for 2025) or 3 percent of your net income, whichever is lower. So, if you earn $50,000 a year, 3 percent works out to $1,500 dollars. In this case, only the medical expenses you paid above $1,500 count toward the credit.

If you and your spouse both have private coverage, it usually makes sense for whoever earns less to claim the combined expenses.

Combine Two Health Insurance Plans If You Have Them

If you have health insurance as part of your employer benefits, adding a private plan shouldn’t duplicate your coverage. Instead, coordinating both plans can meaningfully cut your out-of-pocket costs while maximizing your coverage.

Here’s how it typically works. Your employer plan is usually your primary coverage, and it pays out first on any claim. A private plan can then act as secondary coverage, picking up costs your employer plan doesn’t fully cover. If your employer plan caps massage therapy at a certain amount each year, and you’ve used up that allowance, your private plan may still cover the remaining sessions.

Coordinating insurance plans also fits situations where one has a co-pay or a percentage limit to coverage, such as 80 percent of vision care costs.

Having two plans also helps close coverage gaps. If your employer plan doesn’t include mental health, look for a private plan that does. Before adding a private plan, it’s worth reviewing what your employer plan already covers, and then customizing your private insurance plan to fill the gaps.

Our trusted partner, Cigna Healthcare, offers customizable plans that can complement existing employer coverage, helping you fill potential gaps without paying for duplicate benefits. You can request a quote online in under 2 minutes.

Review Your Plan At Least Once a Year

Plans change, and so do your needs. It’s common to keep paying for coverage that no longer reflects your health requirements. Review your policy annually, ideally around renewal time, to assess whether there are any modules you’re not using, coverage caps that no longer match your needs, or coverage options to add, based on your evolving needs.

Most health insurance providers let you modify plans based on your requirements and budget.

If your healthcare needs, family situation, or budget have changed, it may be worth revisiting your coverage and obtaining an updated quote. For example, Cigna Healthcare allows you to request a quote online and compare coverage options based on your current circumstances.

How to Reduce Your Out-of-Pocket Health Costs

Lowering your health insurance premium is only half the equation. Your out-of-pocket costs matter just as much to your overall healthcare spending. Here are some ways you can save money on healthcare, aside from premium costs:

Shop Around for Health Providers and Services

The cost of the same service can vary a lot depending on where you go. If your plan covers up to $500 a year for massage therapy, you may be able to get more treatments from a therapist charging $100 a session than one charging $150. This also applies to dental care, physiotherapy, chiropractic care, or other paramedical services your plan may only partially cover.

Pharmacies aren’t all priced the same either. The same medication might cost more at a different pharmacy. Dispensing fees, which is the amount a pharmacy charges on top of the drug cost, can also vary by several dollars between locations or pharmacy chains. Comparing a few pharmacies before settling on one, especially for medication you take regularly, can add up to real savings over a year.

Choose Generic Over Name-Brand Prescriptions

Generic drugs contain the same active ingredients as their name-brand equivalents. They adhere to the same safety and effectiveness standards but cost significantly less.

If your plan has an annual maximum for prescription drug coverage, choosing generic options where available stretches that coverage further and reduces what you pay once you exceed your limit. Some private health insurance plans only cover generic drugs, where available, so read the terms carefully.

Stay on Top of Preventive Care

Routine checkups, dental cleanings, and vision exams are often fully or largely covered under most plans. They can also help prevent small issues from progressing into bigger ones.

Catching a problem early is almost always cheaper than treating it once it’s become serious. Skipping preventive care to save on a co-pay in the short term can end up costing more later — both in terms of treatment costs and the damage it does to your health.

FAQs on Saving Money on Health Insurance in Canada

Can I pay my health insurance premium using a credit card?

Yes, most health insurance providers allow you to pay your monthly or annual premiums using a credit card. In fact, using a cash-back credit card is a great way to save money on your health expenses.

Is health insurance worth it in Canada?

For individuals who are only covered under the provincial health plan, private health insurance is usually worth it, especially if they have regular medical or paramedical needs. If you’re a newcomer or temporary resident, and not currently covered by provincial insurance, private health coverage can help protect you and your budget in case of an emergency. If you already have significant coverage through your employer benefit plan, you may not need supplementary private insurance.

For those looking for supplemental coverage or customizable private health insurance, providers such as Cigna Healthcare offer plans that can help cover healthcare expenses not included under provincial coverage.

More Helpful Healthcare Resources for Newcomers to Canada

• Learn how prescriptions work in Canada and when you have to pay.
• New to Canada and not sure what insurance you need? Our article Coverage on Your First Months in Canada covers it in simple terms.
• Learn how to compare health insurance providers in Canada.
• Between jobs? Understand your health insurance options after leaving a job.