By Jill Sperling

Liberals cancel MSP hike, critics say it’s not enough

Sep 16, 2016 | 5:07 PM

KAMLOOPS — A strong provincial economy is being credited for cancelling the planned premium increase for B.C.’s Medical Services Plan (MSP). 

Many people using the premium assistance program could even see their rates go down, but when the rest of the country has done away with healthcare premiums, some would argue the MSP system should be scrapped entirely. 

For now, B.C. residents can breathe a sigh of relief knowing medical premiums won’t increase in the new year.

 “We’ve seen in our first quarterly update that British Columbia is performing very well,” B.C. Health Minister Terry Lake said. “Our revenues are higher than expected, we’ve managed to keep costs down and when the government is taking in more money it’s incumbent of us to share that with the people of British Columbia. So a planned increase to MSP that was scheduled for next January has been cancelled.”

Week in Review

Week in Review: Week of Oct. 7

7h ago

Two and Out

PETERS: Working in local government may pay well, but it sure doesn't seem like a lot of fun

Oct 11, 2024

Looped In

LOOPED IN WITH NIKKI OMEN: October 10, 2024

Oct 10, 2024

In addition to freezing the fee, those making a lower income will now pay even less.

“If you’re on the lower income scale there is assistance for your MSP, a lot of people don’t pay any, in fact with the changes, almost half of British Columbians will not pay MSP at all,” Lake explained. “For seniors they get a bigger break than previously.”

Currently, B.C. families making less than $30,000 a year pay a lower monthly rate. Families making more than that, however, pay the same fee, whether they have an annual income of just over $30,000 or millions. 

When the changes to premium assistance are applied in the new year, some families and individuals bringing in more than $30,000 would qualify for reduced premiums. 

Nevertheless, Rick Turner, co-chair for the B.C. Health Coalition, is still critical of the entire MSP system. 

“While it’s good that there’s going to be some reductions for some people we still think that it ought to be part of progressive income tax,” Turner said. “It would be rolled into your income tax, just like everything else, and at the end of the day if you’re at a high income bracket you might pay a little more than those who are in a low-income bracket, but it would be fair throughout.” 

Kamloops-North Thompson nominee for the NDP, Barb Nederpel believes the Liberal’s MSP announcement was conveniently timed, months ahead of the spring election, but she doesn’t think the move goes far enough.

“Under this government MSP has more than doubled,” Nederpel said, “and specifically under Premier Christy Clark it has gone up every single year. I don’t think that this small gesture by the BC Liberals, I don’t think that the British Columbians are actually going to buy it and that they’re going to think that this government is on their side.”

British Columbia is the only province in Canada that still requires its citizens to pay a premium for healthcare services, and the B.C. Liberals have admitted it’s time to think about other options.

“We’re rethinking it,” Terry Lake said. “I mean, the premier has said that, and we want to make sure that we have the lowest level of taxes and other fees in the country, at the same time building a strong economy, and with the strong economy comes the ability to lower those taxes and those fees or make them more progressive, and that’s what we’re looking at, but it’s not a simple thing. You can’t do it in the wave of a wand. It will take some time and some analysis.”