British Columbians will no longer pay MSP premiums come 2020
Posted December 5, 2019 1:01 pm.
Last Updated December 5, 2019 1:48 pm.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – British Columbians will ring in the new year by joining all Canadians in not paying monthly rates for health care.
Premiums under the province’s Medical Services Plan will be eliminated starting Jan. 1, saving individuals up to $900 a year while families will pocket up to $1,800.
And the provincial government is giving itself a pat on the back for bringing an end to the fees.
“We promised to do that and we are delivering this month,” Premier John Horgan said on Thursday, adding it has taken two years to get to this point.
The change comes a year after premiums were halved and B.C. introduced a new tax of 1.95 per cent for businesses with a payroll over $1.5 million.
The transition has brought ongoing complaints from organizations and businesses that had to pay both taxes this year, or who didn’t pay MSP before but are now paying for the Employer Health tax.
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“This is money going into people’s pockets and then distributed through the community to those very businesses that depend on people having disposable income,” Horgan said.
The Finance Minister, Carole James, said ditching the “unfair” premiums will amount to a net tax cut of $800 million. She said the last such health-care tax in the country has been the most complex of any of the province’s programs to manage.
Companies with a payroll under $500,000 have been exempt from the tax, while those in between pay a reduced rate, though some business owners have complained it leads to losses when profit margins are already thin.
