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

Moms of those killed by illicit opioids take to B.C. Legislature in call for action

Moms Stop the Harm, a nationwide network of families who have lost loved ones to overdoses rally

Second World War prompts airport construction

And now it’s the busiest airport in the region

Trudeau announces bioregional oceans protection agreement in Prince Rupert

Agreement announced in partnership with 14 central and north coast First Nations

115 new wildfires burning across B.C. due to 19,000 lightning strikes

More fires expected to start today, says BC Wildfire Service officials

B.C. turns up the heat

Environment Canada has issued a special weather statement for most the province due to high temperatures

VIDEO: Canadian toddler caught practising hockey skills in crib

Eli Graveline is getting praise from far and wide as the internet freaks out of cute throwback video

Man shot dead in Surrey ID’d as hockey coach and father of two

Murder of Paul Bennett – a respected Peace Arch Hospital worker and ‘champion of sport’ – ‘not random’

Serial killer Robert Pickton transferred to Quebec: victim’s family

Pickton was convicted in December 2007 of six counts of second degree murder

Canadian Syrian children’s choir not to attend festival over fears about U.S. travel

Many kids are recent immigrants from countries covered by Trump travel ban

B.C. teacher ends Jeopardy! winning streak, taking home US$69,000

Ali Hasan, from New Westminster, has been gaining fans as a “one-man invasion,” says Alex Trebek

Jett Woo highlights 5 Canucks choices on Day 2 of NHL entry draft

WHL star out of Moose Jaw tabbed in Round 2

In a matter of hours, women in Saudi Arabia will be allowed to drive

Change was announced as a royal decree in 2017 by Crown Prince Mohammen bin Salman

Feds announce measures to protect endangered whale species

Canada’s Whale Initiative is part of the federal government’s $1.5 billion Ocean Protection Plan

Most Read