Health care premiums

Written By Northern Beat Staff
Published

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BC NDP claim BC Conservative will reinstate health care premiums. Conservative Leader John Rustad said on Sept. 20 his party has “no plans whatsoever to look at bringing back things like MSP.”

Background

The history of health care premiums in British Columbia spans several decades:

BC Medical Services Plan

In 1965, the BC Medical Services Plan (MSP) was implemented. This was the first government-funded medical care program in British Columbia[1].

Entry into federal Medicare program

British Columbia entered the federal medicare program on July 1, 1968, joining Saskatchewan as one of the first two provinces to meet the universal coverage threshold and other requirements[1].

Premium structure

For many years, B.C. residents paid monthly premiums for health coverage. By 2017, there were two levels of coverage: One adult ($37.50/month) and two adults in a family ($75/month)[4].

Reduction and elimination of premiums

In 2018, the BC NDP government reduced MSP premium rates by 50 per cent[4].

On Jan. 1, 2020, MSP premiums were fully eliminated[2][3]. This represented one of the largest middle-class tax cuts in B.C.’s history, saving individuals up to $900 a year and families up to $1,800 annually[2].

Replacement with Employer Health Tax

In 2019, B.C. introduced a new employer health tax of 1.95 per cent for businesses with a payroll over $1.5 million to replace the revenue from MSP premiums[3].

The elimination of MSP premiums made B.C. one of the last provinces in Canada to remove user premiums for health care[2][3]. This change was aimed at making health care more affordable and accessible for B.C. residents.

Citations:
[1] https://bcmj.org/special-feature/origins-publicly-funded-medical-care-bc-and-bcma%E2%80%99s-contributions
[2] https://news.gov.bc.ca/releases/2019PREM0126-002326
[3] https://www.cbc.ca/news/canada/british-columbia/b-c-says-bye-bye-to-medical-services-plan-premiums-1.5386038
[4] https://www.canada.ca/en/treasury-board-secretariat/services/pension-plan/news-notices-pensions-benefits/british-columbia-medical-services-plan-premiums-regular-premium-assistance-changes.html

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