Outstanding MSP Premium

[Donald G]

Policy Note is what I would consider a left wing supporting publication of sorts. I believe that it is published by Terra Poirier and Sarah Leavitt. The above opinion is based on reading a few articles that they have published to do with left wing views of various social issues. I would have to have anything they publish supported by other sources before putting any credence in it. That includes Ms Leavitt's one sided comments regarding the MSP Premiums.

[flamingfingers]

So then DONALD, you say that MSP premiums have NOT increased? And are you saying that government revenue has NOT increased from MSP revenue? And that the source is simply 'making up' the journalist's Q&A with de Jong?

[flamingfingers]

From Mike Smyth at the Legislature:

Despite the absence of LNG money, De Jong is expected to unveil the Prosperity Fund in his budget on Tuesday anyway, with $100 million to get it started.

It had the NDP in full mockery mode Monday.

“They have $100 million to put into a political fantasy fund for the premier,” chided NDP MLA Carole James. “It’s absolutely laughable.”

From a Prosperity Fund to a Fantasy Fund — a clever turn of phrase by the NDP critic. But James wasn’t finished.

“If not one dime is coming from LNG, where did the premier find the $100 million? Well, she found it directly from taxpayers. The latest increase to the medical services tax will bring in $100 million.”

Talk about insult to taxpayers’ injury.

Medical Services Plan premiums are among the most hated taxes in B.C. Just scrap this make-believe Fantasy Fund charade and you could afford to cancel the MSP tax hike.

REad more:

http://www.theprovince.com/news/smyth+p ... story.html

[LongHaul]

flamingfingers » Feb 18th, 2016, 5:05 pm
Ah... found a bit more:
“Doyle said the contract had provided some benefits, but the government hasn’t shown exactly what’s being achieved at what cost, and he also raised concerns about the security of the data system.

Despite the report, the government says Maximus has provided solid performance and it’s extending the contract for another five years at a cost of $264.3 million.

The government says the extension, which will run until March 31, 2020, is considered the best option for continuing the management of the health insurance system.”

That's a chunk of change! Over 10 years that's $528M. Wonder if the cost is in USA $. If yes the cost will have gone up at least 20% with the falling CDN $.

Unfortunately this is money drained out of BC. If it was Outsourced to a BC firm some of this money would be coming back to the Provincial Government. People are employed, they pay Taxes, MSP Premiums, PST which goes back to the government. Same for the firm they work for.

If it was rolled in with Income Tax and the Outsourcing Contract terminated am speculating that there would be significant savings. Also Collection would be much more effective.

However there is the question what is the penalty for an early termination of the Outsourcing contract? There also would be the one time cost of switching MSP to included with Income Tax. There may be other adjustments as the MSP revenue will be coming in when Income tax is paid rather than monthly. Wonder if this is what the B.C. Government doesn't like about the Income Tax option? If there is a cash flow issue somewhere one option could be to borrow from the MSP monthly revenue and pay it back later.

As the other provinces have rolled MSP in with Income Tax BC may be able to get a copy if any new computer programs are needed. Then update them for BC. Avoids reinventing the wheel.

The yearly Income Tax return could break out how much was for MSP. One bizarre reason our Provincial Government gives for not making this change is that people will think Health Care is free. The tax return will provide a once a year reminder this is not the case.

Suppose the Provincial Government could still be concerned there will not be a monthly reminder as with the current system? If they feel that strongly we must be reminded once a month that Health Care is not free they could run a monthly Ad.....

[Donald G]

Unread postby flamingfingers » Feb 21st, 2016, 6:56 pm

So then DONALD, you say that MSP premiums have NOT increased?

That would have to be a comment that someone completely made up for their own political purposes.

[flamingfingers]

DONALD wrote:

That includes Ms Leavitt's one sided comments regarding the MSP Premiums.

There is not even ONE quote in my links that are Ms Leavitt's!

[LongHaul]

by flamingfingers » Feb 20th, 2016, 1:35 pm
What is she TALKING about??!!!
Clark also spoke of changes to MSP premiums while deflecting criticism from the Canadian Taxpayers Federation calling the system flawed and a hidden tax.

“"There are those that will argue this whole MSP should be rolled into the tax system," said Clark.

"It does sound simple, but here is one of the obstacles. About a million people have their MSP premiums paid by their employer. We roll it into the tax system, and we're adding another million people into paying MSP that currently aren't.””

Find the above statement by C.C. totally baffling. Another bizarre excuse why not to change the current system of collecting the MSP tax??

Guessing at what C.C may be trying to say this might refer to the MLAs and the Provincial Government Employees as part of the million people whom aren't paying MSP directly out of their pockets??

The government website for MLAs states Financial Services (I.E. Taxpayers) will pay the full premiums (MSP) for this taxable benefit for eligible MLAs. It is a taxable benefit so the MLA will get a T4A or something like that and pay a bit of tax on this benefit.

C.C. doesn't need to worry. She won't have to pay the full MSP out of her pocket if it collected through Income Tax. Nothing changes, the MSP is paid for her by her employer (the taxpayers) and she pays a bit of tax on this benefit.

Unless am missing something? Are BC's computer systems so far behind the other provinces they can't be updated for collecting MSP through Income Tax and accommodate employees whose MSP is paid by their employer? Find this hard to believe. Some of the other provinces just include it in the system as an Income Tax Surcharge.

Beginning to feel like a case for the X-Files...

Partial extract and link to the site providing information on MSP for MLAs follows:

Premiums
Financial Services will pay the full premiums for this taxable benefit for eligible MLAs, except during any leave without pay. Effective January 1, 2015, monthly rates are $72.00 for one person, $130.50 for a family of two, and $144.00 for a family of three or more.

http://members.leg.bc.ca/mla-remuneration/employment-benefits.htm#medicalservicesplan

[Merry]

When the MSP premium is covered by your employer, the large increases don't seem to be all that important. But if you're unlucky enough to lose your job, you'll find that your MSP bill soon becomes a big issue. Ditto when you retire and are living on a fixed income.

Paying for Government services via a graduated income tax ensures that each citizen pays what they can afford to pay. Whereas a fixed amount, such as with the MSP premium, puts an unfair burden on those that can least afford it. While allowing the wealthy to pay a very small amount, relative to their income.

The idea that collecting MSP separate from tax makes people more aware of the cost of health care is nonsense, when one considers that most people never get the bill themselves, because the bill goes to their employer. Such folk only become aware of the size of that bill when they no longer work and have to pay for it themselves. And for many, when that time comes, they are least able to pay such a large bill. So it's like a double whammy. You just lost your job, and now you have to start paying this extra payment every month.

To add insult to injury, the millions of dollars that are sent out of Canada to cover the cost of administering this unfair system is scandalous. What possible justification can the Government have for wasting our tax dollars in this way, when we already have a perfectly good collection system in place via the CRA? British Columbia taxpayers are, in effect, paying twice for tax collection, as long as our Government insists on using two totally separate methods to collect our taxes. Because the services of the CRA aren't free.