British Columbia Medical Services Plan (MSP) Changes effective January 1, 2018 and Proposed January 1, 2019

Effective Jan. 1, 2018, current rates for MSP Premiums were reduced by 50 per cent for all British Columbian residents.

  • There is no need to apply for this reduction as premium amounts were automatically adjusted for all British Columbians.
  • The Regular Premium Assistance program remains in place, providing financial assistance to those with an annual adjusted net income of $42,000 or less.
  • Families with an annual adjusted net income of $26,000 or less will pay no MSP premiums at all. This is a $2,000 increase from the current $24,000.
  • Employer paid MSP premiums continue to be a taxable benefit to the employee.

A table illustrating 2017 and 2018 premium rates, premium assistance levels, and new rate (subsidy) codes follows.

2017       January 2018 (New Rates)
Rate Code Adjusted Net Income One Person Two Adults in a Family Rate Code Adjusted Net Income One Adult Two Adults in a Family
H $0 – $24,000 $0.00 $0.00 H $0 – $24,000 $0.00 $0.00
I $24,001 – $26,000 $11.00 $22.00 I $24,001 – $26,000 $0.00 $0.00
J $26,001 – $28,000 $23.00 $46.00 J $26,001 – $28,000 $11.50 $23.00
K $28,001 – $30,000 $35.00 $70.00 K $28,001 – $30,000 $17.50 $35.00
L $30,001 – $34,000 $46.00 $92.00 L $30,001 – $34,000 $23.00 $46.00
M $34,001 – $38,000 $56.00 $112.00 M $34,001 – $38,000 $28.00 $56.00
N $38,001 – $42,000 $65.00 $130.00 N $38,001 – $42,000 $32.50 $65.00
C Over $42,000 $75.00 $150.00 C Over $42,000 $37.50 $75.00

Note: There are no MSP premiums for children.

 

Medical Services Plan (MSP) Proposed changes 2019

The 2018 British Columbia budget also announced it would introduce a new Employer health tax effective January 1, 2019 to replace the MSP premiums. All MSP premiums are to be eliminated a year later on January 1, 2020. Therefore, for one year, Employers that have established a group plan for MSP premiums will essentially be double paying.

The payroll tax will not apply to employers with annual payrolls under $500,000. Employers with payrolls over $1.5 million will pay the maximum rate of 1.95% on their total payroll. For employers with payrolls between $500,000 and $1.5 million, the tax rate will phase in gradually until it reaches 1.95%.

Ontario, Quebec, Manitoba and Newfoundland have similar health payroll taxes in place currently.

 

Please contact your Leslie Group consultant or service representative at (416) 510-8966 should you wish to discuss this issue further.

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