Cost Plus Table
Cost-Plus Contract Definition. A cost-plus contract is an agreement to reimburse a company for expenses plus a specific amount of profit, usually stated as a percentage of the contract’s full price. Cost-plus contracts are also referred to in the business world as cost-reimbursement contracts.
GroupBenefits.ca. A Cost Plus arrangement can be set up with an insurer on a fee per claim basis. Insurers generally charge an administrative fee ranging from 10% to 15% of the amount claimed (which often includes the Premium Tax). The fee is usually subject to a minimum of $25 per claim and a maximum ranging from $150 to $500 (depending on the insurer).
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