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.