BC to Cancel Medical Services Plan (MSP) Premiums

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British Columbia (BC) residents will no longer be required to pay Medical Service Plan (MSP) premiums as of January 1, 2020.

The final monthly MSP premium invoice will be distributed to MSP Group Plans in late November 2019, for December 2019 premiums.

MSP premium debts owing prior to January 1, 2020 will still be owed, and collection will continue for any outstanding MSP premium debts.

According to D&H Group LLP,  Employers should ensure that their payroll processes are updated to discontinue any withholding or remittance of MSP premiums for employees for periods after 2019.

The MSP program will continue to provide provincially-insured health care benefits for eligible BC residents. Enrollment in MSP remains mandatory for all residents. See the excerpt from the official Government of BC website below:

BC residents must continue to fulfill their MSP obligations under the Medicare Protection Act, including updating their MSP account due to address changes. HIBC and the Ministry of Health offer easy online services to ensure that their MSP account information and address stay current. To update an MSP account, beneficiaries can visit gov.bc.ca/managingyourMSPaccount.

The new payroll tax called the Employer Health Tax (EHT), which launched on January 1, 2019, will replace MSP premiums.

Learn more about EHT here and the elimination of MSP here.

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