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 CodeAdjusted Net IncomeOne PersonTwo Adults in a FamilyRate CodeAdjusted Net IncomeOne AdultTwo Adults in a Family
H$0 – $24,000$0.00$0.00H$0 – $24,000$0.00$0.00
I$24,001 – $26,000$11.00$22.00I$24,001 – $26,000$0.00$0.00
J$26,001 – $28,000$23.00$46.00J$26,001 – $28,000$11.50$23.00
K$28,001 – $30,000$35.00$70.00K$28,001 – $30,000$17.50$35.00
L$30,001 – $34,000$46.00$92.00L$30,001 – $34,000$23.00$46.00
M$34,001 – $38,000$56.00$112.00M$34,001 – $38,000$28.00$56.00
N$38,001 – $42,000$65.00$130.00N$38,001 – $42,000$32.50$65.00
COver $42,000$75.00$150.00COver $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.