How Much Does Health Insurance Cost in Canada (Average Rates)

How much does health insurance cost in Canada?

Private health insurance costs vary depending on your age, location, and the level of coverage you choose. Most individual health insurance plans cost between $75 and $150 per month on average.

We’ll break this down further using real starting rates from PolicyMe’s Economic health insurance plans.

What we mean by “health insurance”

When we say health insurance, we’re talking about private plans. Not the government-funded care that Canadian residents automatically get through their provinces. This includes coverage for things public healthcare doesn’t fully pay for, like prescriptions, dental, vision care, therapy, and more.

What factors influence the cost of health insurance premiums?

What you pay depends on your personal profile and what kind of coverage you’re looking for. A few key factors will impact how much you pay for private health insurance:

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• Your age: The older you are, the higher your premium — especially if you’re over 50.
• Your medical history: Pre-existing conditions can raise costs or exclude you from coverage.
• Where you live: Rates can vary slightly by province based on regional healthcare costs.
• Your coverage level: More coverage (like adding mental health or comprehensive prescription drugs) means higher premiums.

Cost of health insurance by province

Health insurance costs can vary depending on where you live. Differences in provincial healthcare systems and pricing regulations influence the cost of your monthly premiums.

We’ve laid out the average cost for PolicyMe’s Economic plan in each province, for applicants aged 21-44. These give you a clear, apples-to-apples comparison of what basic private health insurance might cost across Canada.

Cost of health insurance by age

Age is one of the biggest factors that impacts your health insurance premium. The older you are, the more you’re likely to pay even for the same level of coverage. Age may also affect eligibility for healthcare coverage, depending on the company’s underwriting.

Below, we’ve laid out starting monthly rates for PolicyMe’s Economic plan in Alberta by age group, so you can get a sense of how pricing changes over time.

Is private health insurance worth it for me?

Private health insurance is not a one-size-fits-all decision. For instance, do you already have a group plan or benefits plan available to you at work?

To figure out if it’s worth paying for, compare your current healthcare spending with what you’d pay for a plan. Then think about what kind of coverage would actually make your life easier.

Here’s how to break it down:

• Add up your average healthcare costs: Look at what you spend on things like prescription drugs, dental care, glasses, or therapy. Include anything you skipped because it was too pricey. In Canada, prescription spending for private plans has gone up 12.9% since 2023.
• Compare that to the annual cost of a plan: Multiply the monthly premium by 12. If your plan costs $100 a month, that’s $1,200 a year.
• Factor in what the plan would cover: Most plans reimburse between 70-100% of eligible costs. If your expected expenses are higher than the plan’s cost, that’s a net gain.
• Think about what you might avoid without coverage: Would you delay care or skip treatments if you had to pay full price? That can lead to bigger problems and bigger bills down the road.
• Consider the stability a plan gives you: Even if you don’t save money every year, having coverage gives you predictable costs and a buffer against surprise health expenses.

The value of a health plan is not just about saving money. It’s about making care more accessible, staying ahead of issues, and having fewer financial surprises when life throws a curveball. ​​In fact, Canadians claimed more than $32.5 billion in supplementary health benefits in 2022 alone, showing just how often private plans are used for everyday care.

What to compare when looking at quotes from different insurance providers

Price is a major differentiator when comparing policies, but the lowest premium may not mean it’s the best value or the right type of coverage for you.

When comparing health insurance quotes from different companies, be sure to look beyond the monthly rate: What’s the waiting period? What do they cover or not cover? What will you actually pay out of pocket? 

The real cost of health insurance depends on these factors:

Monthly premium

This is the upfront cost you pay every month to stay insured. A lower premium may seem cheaper, but it often means you get less coverage and end up paying more out-of-pocket when you need something.

Deductible

This is the amount you pay out of pocket before your plan starts reimbursing you. Most plans pair a low monthly premium with a higher deductible, so you’ll pay more out-of-pocket if you need medical care.

Co-pays or co-insurance

A co-pay is your cost when you share the price of something with your insurer. Some plans require you to cover a certain percentage of each claim. For instance, you might pay 20% of the cost for a massage or eye exam, while the insurance company covers the rest. Research the co-pays for the services you anticipate needing most, as percentages can change. 

Maximum per claim or per service

The majority of plans have a cap on how much they’ll pay out for each specific service, like dental work, glasses, or therapy. These are very important because a low cap could make a low monthly premium pretty worthless when you actually need coverage.

Annual & lifetime coverage limits

There are also annual caps and lifetime caps with most health insurance companies. Higher limits generally mean higher premiums but also better protection long-term.

Waiting periods

You may have to wait a few months or a year to be eligible for certain health benefits (like dental, vision, or major services). This can impact when you actually start getting value from your plan, and it differs from one company to the next. 

What the insurance covers (or not)

Look at the fine print to understand which services the company does and does not cover. There are usually exclusions in categories like dental, vision, prescriptions, mental health, and paramedical care. Lower-priced plans may totally exclude higher-cost services altogether. Make sure to consider your dependents, too. 

"Prescription drugs tend to be one of the most frequently used and costly out-of-pocket items, so this coverage offers strong value if you fill multiple prescriptions per year. Using multiple types of services is often when private health insurance really starts to pay off." – Ivana Govedarica, Life Insurance Advisor

How much do you save with private health insurance coverage?

Private health insurance can help you save money if you use it regularly. The amount you save depends on what your plan covers, how often you need care, and what those services would cost you out of pocket.

^{* Based on typical annual costs for the aforementioned healthcare services in Canada.}

^{** Based on 80% coverage for prescription medication, 80% coverage for dental, bi-annual cap of $200 every two years for vision, and 80% coverage up to a $300 cap for massage and $500 cap for physiotherapy.}

Here’s where your savings usually come from:

• Prescription medications: Even with provincial coverage, many people still pay out of pocket. A plan that covers $70 or more of drug costs can save you hundreds per year if you take regular medication.
  
• Dental care: A basic cleaning can cost around $225. Two visits a year means $300. If you need a filling or x-ray, the total jumps quickly. Most private plans cover 80% of routine dental care. The CDCP may cover dental insurance for some Canadians but it’s not comprehensive.
  
• Vision care: Glasses or contacts often cost between $200 and $400 every couple of years. A plan with vision coverage helps bring that number down.
  
• Paramedical services: This includes physiotherapy, massages, chiropractic care, or counselling. If your plan covers 80% per visit, your savings can grow fast — especially if you use these services more than a few times a year.
  
• More predictable costs: Even if what you claim in a year equals your premium, you’re swapping unpredictable bills for one steady monthly cost. That kind of consistency can reduce financial stress.

Saving money is one thing — being able to afford care when you need emergency medical care is another. 56% of Canadians are delaying or skipping health appointments because of cost.

A private health insurance plan can take the pressure off, so you’re not forced to choose between your budget and your well-being.

Want to see it for yourself? Add up what you spent on medical services last year. Then compare it to the cost of a plan and what would have been reimbursed. In many cases, the savings are clear. And even when they’re not, the value is knowing care is within reach when you need it.

Cutting the cost of health insurance through tax deductions

Private insurance in Canada might feel like a big expense, but some of that cost could come back to you at tax time. The more you’ve spent on your healthcare needs in a year, the more helpful the credit becomes.

You may be able to claim the premiums you pay for private health insurance as a medical expense on your tax return if your plan includes:

• Prescription drug coverage
• Dental care
• Vision
• Paramedical services

These qualify under the CRA’s list of eligible medical expenses. 

Here’s how to get the tax credit for personal health insurance costs:

• Total up your total medical expenses for the year.
• Find out if it exceeds either three percent of your net income or a fixed amount set by the CRA — whichever is lower. For the 2025 tax year, that fixed amount is $2,834. 
• Fill out lines 33099 and 33199 on your tax return.
• Get credit for the portion of expenses that goes over this threshold. 

Note that this is a non-refundable tax credit. It won’t give you a refund, but it can reduce the amount of tax you owe. So while it won’t wipe out the cost of your premiums, it can take the edge off, especially when combined with other eligible health expenses.

Bottom line: private health insurance costs

• Health insurance costs can add up, but they can also prevent even bigger out-of-pocket surprises — especially if you’re using services like dental, prescriptions, or physio regularly.
• If you're comparing quotes, focus on total value, not just the monthly rate. Small details like claim limits and waiting periods can make a big difference.
• The best health insurance plan is one that fits your needs, your budget, and your stage of life — not just the one with the lowest premium.

FAQ: How much does health insurance cost