Alternatives to Manulife for Small Business Health Benefits in Canada
If you're looking for alternatives to Manulife for your small consulting firm, you're not alone. Manulife's group plans are built for larger companies — and for small teams of 1-5 people, they often mean expensive premiums, rigid plan tiers, and coverage you never actually use. The good news: there are simpler, cheaper options that give you more flexibility. The most cost-effective alternative for most small businesses is a Health Spending Account, which lets you cover eligible medical expenses tax-free with no monthly premiums at all.
How the Alternatives Compare
| Provider | Type | Monthly Premiums | Coverage Scope | Best For |
|---|---|---|---|---|
| Frontier Health | HSA (pay-as-you-go) | None | All CRA-eligible expenses | Solo pros and small teams (1-3) |
| Olympia Benefits | HSA | None | All CRA-eligible expenses | Businesses wanting advisor support |
| Chambers Plan | Group insurance | $150-$300+/person | Plan-defined only | Small businesses wanting traditional insurance |
| SimplyBenefits | Group insurance | Varies by plan | Plan-defined only | Tech-forward teams wanting digital insurance |
| GreenShield | Group insurance | Varies by plan | Plan-defined only | Businesses wanting a large insurer network |
Why Small Firms Leave Manulife
The most common frustrations with Manulife for small businesses come down to three things:
Cost. Monthly premiums of $150-$300+ per person add up fast, especially when your team is healthy and barely uses the plan. You're paying whether anyone visits a dentist or not.
Rigid coverage. Manulife plans cover what the plan says they cover. If you need massage, mental health, or fertility treatments and those aren't in your tier, you're out of luck.
Complexity. Broker negotiations, medical questionnaires, annual renewals with rate increases, co-pays, deductibles — it's a lot of overhead for a team of two or three people.
The HSA Alternative
A Health Spending Account flips the model. Instead of paying premiums every month and hoping you use enough to justify the cost, you only pay when someone actually has a health expense. Every dollar is 100% tax-deductible for your business and 100% tax-free for employees.
There are no plan tiers. Anything the CRA considers an eligible medical expense is covered — dental, vision, physio, massage, prescriptions, mental health, chiropractic, fertility treatments, and more. No exclusions, no co-pays.
Why Small Businesses Choose Frontier Health
Frontier Health is built specifically for solo professionals and small teams who want the simplest, cheapest way to cover health expenses through their business. Here is what makes it different:
- No monthly premiums. Pay only when a claim is submitted.
- 24-48 hour reimbursement. Submit a receipt photo, get paid by e-transfer.
- Everything CRA allows is covered. No plan exclusions or confusing tiers.
- No setup fee, cancel anytime. No contracts, no commitments.
- 100% tax-deductible. Every reimbursement is a deductible business expense.
For a solo consultant spending $2,400/year on health expenses, that entire amount becomes a tax deduction — saving $600-$900 in taxes depending on your bracket. With Manulife, you'd pay premiums whether you had expenses or not.
The Bottom Line
Manulife is a fine insurer for large companies with big budgets. But if you run a small consulting firm and want something more flexible and cheaper, an HSA through a provider like Frontier Health, Olympia Benefits, or SimplyBenefits gives you broader coverage at a fraction of the cost. For most small businesses, the pay-as-you-go model simply makes more sense.
Ready to switch? Get started with Frontier Health — no setup fee, no premiums, and reimbursements in 24 hours.