British Columbians will get their last MSP bill this month, marking the end of MSP premiums

People in B.C. will receive their last ever Medical Services Plan (MSP) bill this month. 

As of Jan 1, 2020, MSP premiums will be fully eliminated; the provincial government took the first step towards elimination with a 50 per cent cut in premiums as part of the budget 2017 update. 

“The cost of health care should not be a burden on people, but for too long, unfair MSP premiums made it hard to get ahead,” said Premier John Horgan in a news release.

“Our government is making different choices and we’re working to make life more affordable for people in B.C. This represents one of the largest middle-class tax cuts in B.C.’s history and will make a big difference in people’s lives.”

The elimination of MSP premiums represents a net tax cut of $800 million.

Individuals will save up to $900 a year, while families will save up to $1,800 a year.

“The people of our province should be able to access British Columbia’s world-class health care system without having to worry whether or not they can pay their MSP premium,” said Adrian Dix, B.C.'s Health Minister in the same release.

“With this last bill, people will continue to receive the health care they deserve, while enjoying their savings as a result of the MSP premiums being eliminated.”

Before fully eliminating MSP premiums, B.C. was one of the last provinces in Canada to have user premiums for health care. Although MSP premiums are being eliminated, the MSP program will continue to provide eligible B.C. residents with provincially insured health-care benefits.

B.C. residents must also continue to fulfil their MSP obligations under the Medicare Protection Act and regulations, such as proof of identity, to complete enrolment in MSP and to obtain a BC Services Card, and updating their account in the case of family and address changes.

MSP beneficiaries who have auto-payments through their financial institution are reminded to cancel that arrangement to ensure payments to the Province do not continue. They are also reminded to keep their accounts up-to-date with MSP, including address changes.

While premiums will be phased out for individuals, some businesses are set to foot the bill. 

As of Jan. 1, 2019, the employer health tax came into effect. 

Employers with B.C. remuneration of under $500,000 or less do not have to pay the employer health tax but employers between $500,000.01 and $1,500,000 (notch rate amount) pay the reduced tax amount as calculated: 2.925 per cent times (B.C. remuneration - $500,000).

Greater than $1.5 million pay the tax on their total B.C. remuneration as calculated: 1.95 per cent times total B.C. remuneration. 

- with files from Jess Fedigan, PrinceGeorgeMatters