Nova Star Insurance Consultant offers cost-plus group benefits plans for small and mid-sized businesses across Ontario, Alberta, Quebec, Nova Scotia, and New Brunswick. As an independent insurance broker, we help Canadian employers build flexible, transparent employee benefits programs — without the hidden markups and unpredictable premiums that come with traditional group insurance. Pay only for what your team actually uses, and put the savings back into your business.
A cost-plus group benefits plan is a type of employee benefits arrangement where the employer pays the actual cost of employee health and dental claims, plus a flat administration fee — rather than a fixed monthly premium. Unlike traditional insured group benefit plans, cost-plus eliminates insurer profit margins, risk-loading charges, and pooling adjustments that inflate your costs regardless of actual claims.
For Canadian businesses — especially those with a healthy workforce or tight budgets — cost-plus delivers something traditional group insurance rarely does: complete pricing transparency and direct control over your benefits spend.
1. Needs assessment We start by analyzing your workforce demographics, existing coverage, and budget. This allows us to define the right employee benefits structure for your business — before recommending any product.
2. Customized plan design We build a tailored cost-plus benefits package covering health, dental, vision, life, and disability — aligned to your business goals, your team size, and your industry.
3. Competitive carrier bidding We leverage our network of top Canadian insurance carriers to secure the most competitive administration rates for your plan. You’re not locked into one provider — we shop the market on your behalf.
4. Transparent pricing No hidden fees. No commissions buried in your premiums. From day one, you see exactly what you’re paying and why — full cost transparency across every line item.
5. Ongoing optimization We continuously monitor your claims data and plan performance, making proactive adjustments year over year to keep your benefits plan efficient, competitive, and aligned with your team’s evolving needs.
Full flexibility Customize coverage levels across health, dental, paramedical, mental health, and more. Your group health and dental plan is built around your team — not a generic off-the-shelf package.
Cost-effective coverage Pay only for actual claims plus a flat admin fee. Eliminate the hidden insurance markups built into traditional premiums, and return unused funds directly to your bottom line. For businesses pairing cost-plus with a health spending account, the tax advantages are even greater.
Attract and retain talent A competitive employee benefits package is one of the most powerful tools for winning top talent in Canada’s tight labour market — and cost-plus lets you offer meaningful coverage without overcommitting your budget.
Built-in financial protection Stop-loss coverage protects your business from catastrophic individual claims or unexpected spikes in total plan costs. You get the advantages of a cost-plus model with a financial safety net underneath.
Tax efficiency Employee benefits delivered through a cost-plus plan are generally a deductible business expense in Canada, making this one of the most tax-efficient ways to compensate and retain your team. We recommend speaking with your accountant to confirm how this applies to your situation.
Our licensed group benefits consultants guide you through every stage — from initial design to annual renewal — so your plan always works as hard as your team does.
Cost-plus group benefits are an excellent fit for many Canadian businesses, but they’re not the right solution for everyone. Here’s a quick guide:
Cost-plus tends to work best for:
Traditional group insurance may suit you better if:
Not sure which model fits? Our advisors will assess your situation and give you an honest recommendation — even if that means pointing you toward a traditional group health plan or a hybrid approach instead.
A cost-plus group benefits plan is an employee benefits arrangement where a Canadian employer pays the actual cost of employee health and dental claims, plus a flat administration fee — rather than a fixed monthly premium. The model gives businesses full pricing transparency and typically lowers costs for groups with healthy claims histories.
Traditional group insurance bundles in insurer profit margins, risk-loading, and pooling adjustments — which you pay whether or not your employees make claims. With a cost-plus plan, you pay only for actual claims plus a flat admin fee. The result is lower costs for healthy groups and full visibility into every dollar spent on benefits.
Yes — cost-plus is often an ideal fit for small and mid-sized Canadian businesses. It eliminates unpredictable premium increases, offers significant tax advantages (benefits are generally a deductible business expense), and can be paired with a health spending account for even greater flexibility. Nova Star will assess your specific situation and recommend whether cost-plus, traditional group insurance, or a hybrid plan best suits your organization.
Stop-loss insurance places a cap on your financial exposure — either per individual claim or across your total plan for the year. Nova Star builds appropriate stop-loss coverage into every cost-plus plan we design, protecting your business from unexpected high-cost claims while preserving all the transparency and cost advantages of the cost-plus model.
Contact us using the form below or call us directly at (647) 520-6899. One of our licensed group benefits consultants will schedule a complimentary needs assessment — reviewing your current coverage, workforce demographics, and budget — and recommend the right cost-plus solution for your business.
Stop overpaying for rigid, opaque group insurance. A cost-plus plan from Nova Star Insurance gives your business full transparency, meaningful coverage, and a benefits program your team will actually value.
