Hundreds of thousands of people are not registered or in arrears on their Medical Services Plan fees. They are treated anyway.

BC VIEWS: Take MSP off life support

Premier Christy Clark and Finance Minister Mike de Jong claim that medical fees send message that health care isn't free

The B.C. Liberal government made a big show of selectively easing Medical Services Plan fees in its budget for the coming election year.

In what is becoming a pattern for Premier Christy Clark, the biggest beneficiaries are single parents. The new MSP is calculated for adults only, so a single parent with two children saves as much as $1,200 a year.

Premium assistance is expanded, with discounts for single people making up to $42,000, rather than $30,000. But for singles, couples and seniors who don’t qualify for discounts, the rate is going up another four per cent effective Jan. 1, 2017.

Indeed, with population growth, the finance ministry expects its take from MSP premiums to rise every year, reaching $2.5 billion in the coming years.

MSP revenue covers about 17 per cent of B.C.’s health budget, and Clark and Finance Minister Mike de Jong insist that Canada’s only direct health care charge is a vital signal to people that health care isn’t free.

This argument has failed.

One seldom-discussed fact is that for half of the people charged MSP, it’s paid by their employers. In private sector terms it’s a hefty payroll tax, creating one more obstacle for businesses to hire full-time staff with benefits.

So most full-time employees don’t receive this supposedly vital signal, unless they get laid off because their employer is losing money.

Also note that politicians and public sector employees have never paid MSP premiums. Their employers, taxpayers, pick up the tab for them.

People who have to pay out of pocket are what the bureaucracy calls “pay direct accounts.” Jordan Bateman of the Canadian Taxpayers’ Federation recently revealed that nearly 400,000 of these accounts are currently in arrears by more than 30 days, owing a grand total of $457 million.

Of course this is Canada, so even if you haven’t paid or even registered for MSP, you still get treatment at the hospital. Another potential signal lost in the noise.

For people who lose their jobs, MSP is like being kicked when they are down. Their employer stops paying, and the slow-moving bureaucracy charges them based on their income from the previous year.

There was a fuss in 2004 after the B.C. Liberals contracted out MSP administration to a Virginia-based back-office specialist, delightfully named Maximus Corporation.

Now Maximus goes after delinquent MSP accounts with collection agency tactics, and attempts to keep up with the comings and goings from other provinces and countries.

Opposition parties decry the continued inequity of the MSP premium system, which charges the same for a single person making $45,000 or $450,000 a year.

NDP leader John Horgan rails about inequality and accuses Clark of using MSP revenues to establish her prosperity “slush fund,” but he stops short of calling for the elimination of MSP premiums.

One would expect the NDP to lead another “axe the tax” campaign, as they did with the carbon tax and the HST, but they aren’t. Perhaps this is because workers for this unnecessary Maximus machine remain members of the B.C. Government and Service Employees’ Union.

Green Party leader Andrew Weaver has it right. He staged a popular petition drive to roll MSP premiums into income tax. If the government wants to send a message, it can interrupt its continuous “Jobs Plan” advertising.

Scrapping MSP and raising income tax rates on higher brackets to compensate would fix the private sector payroll deterrent, make salaried employees (including me) pay their share, and end a tax break for the wealthy.

Don’t hold your breath.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca Twitter: @tomfletcherbc

 

Just Posted

Rossland chocolatier plans move to cannabis edibles

Council approves zoning change to accomodate processing facility

Seniors Advocate seeking feedback at Trail meeting

Isobel Mckenzie will be at the Trail Legion for two hours on Friday

FortisBC to offer free energy efficiency assessments for small businesses

Fortis BC wants to help 900 storefronts in Kelowna, Penticton and Rossland

$174-million acid plant up and running at Trail smelter

Teck Trail Ops; New facility replaces 1970s technology

Chilliwack woman wins right to medically assisted death after three-year court battle

Julia Lamb has been the lead plaintiff in a legal battle to ease restrictions on Canada’s assisted dying laws

NDP, Liberals promise more spending, while Tories promise spending cuts

Making life more affordable for Canadians a focus in the 2019 election

UPDATE: Police probe third threat against a Kamloops high school in eight days

Police have not released any further details into what the threat includes

Charges dropped against Mountie involved in shooting death of Surrey man

‘I feel like I’ve lost Hudson all over again,’ says mom

B.C. Interior caribou protection area big enough, minister says

Proposals sparked protest in Kootenays, Williams Lake region

Two B.C. women selected to compete on ABC’s The Bachelor

Mykenna Dorn and Alexis Thind will compete for bachelor Peter Weber’s heart

Vaping-related illness confirmed in Ontario believed to be first in Canada

Middlesex-London Health Unit had no further details about the case — believed to be the first confirmed in Canada

Canadian stars Virtue, Moir say in video they’re ‘stepping away’ from ice dancing

The pair thank fans for their support in an emotional message

Woman held at gunpoint during carjacking in UBC parkade

University RCMP say the vehicle is still missing, and two suspects are at large

Most Read