5 Smart Strategies to Save on Health Insurance Premiums in Canada

Most Canadians understand the value of health insurance, but that doesn’t mean they enjoy paying for it. Premiums can add up, and while we can’t make them disappear entirely, there are smart ways to keep costs manageable. Whether you’re an individual, self-employed, or incorporated, a few simple strategies can help you get more value from your coverage while keeping more money in your pocket.

Here are five practical, proven ways to save on health insurance in Canada - without compromising your protection.

1. Pay Through Chexy and Earn Rewards

If you're paying your premiums monthly, why not earn something back?

Chexy allows you to pay recurring bills (like rent or insurance) with a credit card - even if your provider doesn’t accept credit cards directly.

Why it helps:

• Business owners can pay using a Corporate AMEX and potentially earn net-positive cash back.
• Individuals can use a high-reward credit card, such as the Scotiabank Visa Infinite Momentum, to earn cash back on recurring payments.

Bonus tip: Chexy can be layered with other strategies:

• Individuals: Combine Chexy with the Medical Expense Tax Credit (METC) to earn rewards and reduce your taxes.
• Businesses: Deduct the premium as a business expense and earn credit card rewards.

👉 Use this referral link to sign up for Chexy and start maximizing your payments.

2. Claim Premiums Using the Medical Expense Tax Credit (METC)

The Medical Expense Tax Credit (METC) allows you to claim eligible medical expenses—often including health insurance premiums—on your tax return.

How it saves you money:

• Reduces your overall taxable income.
• Lets you claim expenses for yourself, your spouse, and eligible dependents.

🧮 Check out the CRA’s METC guide for more information, or consult your accountant. Popular online tax-filing services (e.g. Wealthsimple Tax, or TurboTax can also assist with this).

Important note for employees:

• If you have access to a Health Spending Account (HSA), you must choose between the HSA and METC - you can’t use both for the same expense.
• If your employer is currently paying your premiums, you’re already receiving a tax-free benefit. These strategies become relevant if you leave your job and start paying out-of-pocket.

3. Deduct Premiums as a Business Expense (If You’re Incorporated)

If you own a corporation, your health insurance premiums may qualify as a deductible business expense, provided your plan meets the criteria of a Private Health Services Plan (PHSP).

Why it works:

• The corporation pays the premium, reducing its taxable income.
• You receive the benefit without using personal after-tax dollars.
• You may also earn rewards if paying via Chexy with a business card.

💡 Talk to your accountant to ensure your plan is eligible and properly structured.

4. Use Your Health Spending Account (HSA)

If your employer offers an HSA as part of your compensation, it can be a tax-free way to pay for your health insurance premiums.

Why it works:

• It’s a non-taxable benefit for you (the employee).
• It’s a legitimate business expense for your employer.
• Employers can use HSAs to offer flexible benefits to their employees.

🔄 As mentioned earlier, expenses reimbursed through an HSA can’t also be claimed under METC.

5. Use Aeva to Find the Right Plan at the Best Price

Choosing the right plan from the start can save you significantly over time.

Aeva.ca lets you compare health insurance plans from top providers across Canada in under 5 minutes. Whether you're looking for basic coverage or a more comprehensive plan with dental and vision, Aeva helps you find the best fit at the best price.

👉 Compare health insurance plans now

Final Thoughts

Smart insurance shoppers don’t just look at the monthly premium - they look at the net cost after tax credits, business deductions, and reward strategies. Whether you’re an individual or a business owner, combining the right tools can help you save money while keeping your health coverage strong.

Have questions, comments, or suggestions? Please reach out directly to us, we'd love to hear from you.