TaxTips.ca - BC medical services plan (MSP)

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Tax Rates/Credits -> BC Tax -> Medical Services Plan

BC Medical Services Plan

The health care program in BC is called the BC Medical Services Plan, or MSP. BC charges an annual fee, also called a premium, for this plan. The rates are shown in the table at the bottom of the page.

MSP insures medically required services provided by physicians and supplementary health care practitioners, lab services, and diagnostic procedures. Prescription medications are not covered (see the Pharmacare page), and most dental services are not covered. For more detailed information on what benefits are covered by MSP, see the BC Ministry of Health MSP home page.

There is premium assistance available, based on adjusted net income for the 2 preceding tax years for an individual or couple, but the premium is not collected through the income tax system. The premium for many employees is paid, in part or in full, by their employers directly to the government.

In order to pay reduced premiums, a person must make application to the Medical Services Plan. There are 2 types of premium assistance - regular premium assistance, and temporary premium assistance. For more information, and to apply for regular premium assistance, go to the MSP web page topic Application for Premium Assistance. To apply for temporary premium assistance, see the topic Temporary Premium Assistance on the BC Small Business and Revenue MSP Financial Assistance Programs page.

Adjusted net income for BC MSP

Adjusted net income is calculated by taking

	combined family net income (line 236 on the tax returns)
	less line 117 Universal Child Care Benefit (UCCB) income and
	less line 125 Registered Disability Savings Plan (RDSP) income)

for the previous tax year, and making the following deductions:

Spouse	$3,000
65 yrs of age or older	$3,000
Spouse 65 yrs of age or older	$3,000
Children 18 yrs of age or less - amount per child - this deduction is reduced by 50% of child care expenses claimed on either spouse's tax return	$3,000
Disability - for each disabled person	$3,000
Universal Child Care Benefit (UCCB) reported on your (and/or your spouse's) tax return at line 117	actual amount

Children are no longer eligible for coverage as dependents when they:

	marry or live together in a marriage-like relationship,
	start full-time employment, or
	turn 19 years of age

The adjustment for being 65 years old applies when the persons becomes 65 at any time during the year. A couple who are both 65 years of age would qualify for reduced premiums with combined net income before adjustments of $39,000 or less.

Tables of Medical Services Plan Rates

2012

2011

2010

2005 to 2009

MSP premium rates can also be found on the BC Ministry of Health website.

Revised: December 12, 2011

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