When you're self-employed, nobody hands you a benefits package. OHIP covers your doctor and the hospital — but not the dentist, your prescriptions, your glasses, or your physio. Those bills land entirely on you. The good news: you have three solid ways to cover them, and one of them (if you're incorporated) can be surprisingly tax-smart.
Whether you're a freelancer in Toronto, a contractor in Brampton, a shop owner in Scarborough, or a newcomer building a business in the GTA, this is the coverage most people don't think about until a $2,500 dental bill or a pricey prescription shows up. Here's how it actually works in 2026.
What OHIP covers — and the gap you're left with
OHIP is genuinely good at the big stuff. But for a healthy working-age adult, the everyday health costs it doesn't touch add up fast:
✓ OHIP covers
- Family doctor & specialist visits
- Hospital & emergency care
- Medically necessary surgery
- Most in-hospital drugs
✕ You pay out of pocket for
- Dental — cleanings, fillings, crowns, root canals
- Prescription drugs taken at home
- Vision — eye exams, glasses, contacts
- Paramedical — physio, massage, chiro, mental health
With an employer, a group plan quietly covers all of that. Self-employed, you're the employer — so you build the plan yourself. Here's how.
Your three main options
1. Individual health & dental plan
Buy coverage directly from an insurer. Predictable monthly premium; covers dental, drugs, vision and paramedical up to set limits. Easy to start, available to sole proprietors and incorporated owners alike.
2. Health Spending Account (HSA)
Pay medical/dental costs through your corporation — generally a business deduction for the company and a tax-free benefit to you. Great for predictable annual expenses. (More on this below.)
3. Association / group programs
Some professional associations and small-business groups offer pooled plans. Coverage and value vary widely — sometimes a great deal, sometimes not. Always compare against an individual plan.
4. A combination
Many owners pair a modest individual plan (for big, unpredictable costs like major dental or drugs) with an HSA (for routine, predictable expenses). Best of both worlds.
What it costs in Ontario (2026)
Individual health & dental premiums depend on your age, the coverage level, and whether you choose a plan that asks health questions (cheaper) or a guaranteed-acceptance plan (no medical, but pricier with waiting periods). Illustrative monthly ranges for one adult:
| Plan level (one adult) | Typical monthly premium |
|---|---|
| Basic (dental + some drugs) | ~$60 – $110 / mo |
| Mid (dental, drugs, vision) | ~$110 – $180 / mo |
| Comprehensive (+ paramedical, higher limits) | ~$180 – $300+ / mo |
A family plan costs more but often delivers better value per person. The right level depends on how much dental and prescription use your household actually has — over-buying is as wasteful as under-buying.
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Get My Free Quote →The incorporated owner's secret weapon: the HSA
If your business is incorporated, a Health Spending Account is often the most tax-efficient way to cover health costs. Instead of paying the dentist with after-tax personal dollars, your corporation reimburses the expense:
- The cost is generally a deductible business expense for the corporation.
- The reimbursement is typically a tax-free benefit to you personally.
- You cover real, predictable expenses (cleanings, glasses, prescriptions) efficiently, rather than paying a premium for costs you may not incur.
The trade-off: an HSA reimburses what you actually spend, so it's best for predictable costs. Pair it with a small insured plan to protect against a big, unexpected bill — that combination is what many incorporated GTA owners land on. (Always confirm the tax details with your accountant — rules and eligible expenses matter.)
A GTA example: Maya, self-employed designer in Toronto
Maya, 34, runs a small design studio (sole proprietor). OHIP covers her doctor, but last year she spent about $1,900 on dental, $600 on prescriptions and physio, and $350 on new glasses — roughly $2,850 out of pocket. A mid-level individual health & dental plan at about $140/month would have covered the large majority of that, turned a lumpy surprise into a predictable cost, and protected her from a worst-case dental year.
If Maya later incorporates, we'd revisit an HSA to run those routine costs through the business more tax-efficiently.
How to choose — by your situation
- Sole proprietor, healthy, budget-focused: a health-questioned individual plan at the coverage level that matches your real dental/drug use.
- Recently declined or have conditions: a guaranteed-acceptance plan (no medical questions) — costs more, but you're covered.
- Incorporated with steady expenses: an HSA, often paired with a small insured plan for catastrophic costs.
- Family with kids: a family plan — dental and orthodontics for kids alone often justify it.
- Newcomer building a business: get a plan in place early; some coverages have waiting periods, so sooner is better.
The bottom line
Being self-employed doesn't mean going without benefits — it means designing them. OHIP handles the catastrophic; you cover the everyday (dental, drugs, vision, paramedical) with an individual plan, an HSA if you're incorporated, or a smart combination of both. The right setup depends on your structure, your health, and how you actually spend — which is exactly what a licensed advisor sorts out with you in one short conversation.
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Get a Free Quote →Keep reading: Group benefits for small business · Is critical illness insurance worth it?
Premiums and figures in this article are illustrative 2026 estimates for general guidance only — not a quote or guarantee. "Maya" is a hypothetical example. Tax treatment of health plans, HSAs, and PHSPs depends on your business structure and current CRA rules; this is not tax advice — confirm with a qualified accountant. Actual coverage and cost depend on your age, health, plan, and insurer. Cover & Protect is an Ontario-licensed independent insurance advisory practice (FSRA Licence #10112782). This article does not constitute insurance, tax, or financial advice for any specific individual; contact us for advice tailored to your situation.