Elimination of MSP Premiums

Year
2011
Number
B106
Sponsor(s)
North Vancouver City

WHEREAS the Premier of British Columbia has announced a policy of putting families first and seniors are crucial members of our families; AND WHEREAS seniors in BC are the only ones in Canada who pay provincial medical insurance premiums: THEREFORE BE IT RESOLVED that UBCM call upon the Province of British Columbia to eliminate medical insurance premiums for seniors in BC and to bear any associated costs.

Provincial Response

Ministry of Health In British Columbia premiums are payable for Medical Services Plan MSP coverage; there are no special rates for seniors. As of January 1, 2011, monthly MSP rates are 60.50 for one person, 109.00 for a family of two, and 121.00 for a family of three or more. The current rate structure and assistance programs are designed to offer a basic monthly rate to the majority of eligible British Columbians and premium subsides to those in financial need. If the person qualifies for premium assistance, that rate is reduced by 20, 40, 60, 80 or 100 percent depending on the percentage of subsidy being provided. Each province determines independently what combination of funding sources it uses to pay for health care services. BCs health care programs are funded through a number of sources: the federal contributions; general provincial taxes such as those levied on fuel, property, consumer sales and services, and personal and corporate income; and premiums. For example, Ontario charges a health premium that is collected through the income tax system. Other provinces use different funding formulas to finance their medical plans, relying more heavily on general provincial taxes. In 2010, premiums in BC generated over 1.8 billion to put toward our health care costs. If the provincial government were to consider discontinuing the collection of premiums, a significant increase to income tax or provincial sales tax would need to be considered in order to maintain services. Residents of BC continue to be asked to share in the funding of healthcare costs if they have the financial resources to do so. This approach is intended to ensure access to a system of quality health care for all British Columbians. As BC has an aging population any loss in premium contributions would have a significant impact on health services in the future.

Convention Decision
Endorsed