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Healthcare "Premium Costs" Going down in British Colombia Canada
Old 01-08-2018, 08:04 AM   #1
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Healthcare "Premium Costs" Going down in British Colombia Canada

We are always talking about HC costs increasing. What is British Colombia Canada doing right? What is the USA doing so wrong? Remember the "Premium" is NOT paid to an Insurance Company, it is a fee collected by the Government in return for the Healthcare services. Note: EVERYONE pays it based on their income.

For 2018 individual premiums are going down by 50% (YES Five, Zero Percent)

Here are some excerpts:

"Effective Jan. 1, 2018, current rates for MSP Premiums will be reduced by 50 per cent for all British Columbians. There is no need to apply for this reduction: premium amounts will be automatically adjusted.
Through the Regular Premium Assistance Program, effective Jan. 1, 2018, families with an annual adjusted net income of $26,000 or less will pay no MSP premiums at all (a $2,000 increase from the current $24,000)."
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Old 01-08-2018, 08:22 AM   #2
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I can't comment on BC but I'm glad you put "premium costs" in quotes. A bit of a pet peeve of mine, but people are always talking about what they pay for HC insurance as the premium. The premium is what the insurance company charges - including whatever the government pays.

Your premium can "go down" if someone else pays part if it, but that is just because someone else is paying for it! Not because the insurance is cheaper.

I seriously doubt that actual healthcare costs in BC went down 50% (and per google are going to zero within 4 years).

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Old 01-08-2018, 04:35 PM   #3
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Multiple snarky and/or rude posts were deleted. The thread was moved into the Public Policy forum.
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Old 01-12-2018, 06:03 PM   #4
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I don’t believe these “premiums” cover a significant part of the total health care cost in BC. The vast majority come from general tax revenues including transfers from the federal gov’t. Probably a political move?
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Old 01-12-2018, 10:02 PM   #5
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Originally Posted by Danmar View Post
I don’t believe these “premiums” cover a significant part of the total health care cost in BC. The vast majority come from general tax revenues including transfers from the federal gov’t. Probably a political move?

“The Canadian Institute for Health Information predicts per capita heath spending in the province will be $6,321.”

Obviously the MSP premiums, even prior to being reduced, could not cover that health expenditure.

The Canada Health Act gives provinces autonomy in how they want to orgabnize their Health services, within the following five constraints:
Public Administration: All administration of provincial health insurance must be carried out by a public authority on a non-profit basis. They also must be accountable to the province or territory, and their records and accounts are subject to audits.

Comprehensiveness: All necessary health services, including hospitals, physicians and surgical dentists, must be insured.

Universality: All insured residents are entitled to the same level of health care.

Portability: A resident that moves to a different province or territory is still entitled to coverage from their home province during a minimum waiting period. This also applies to residents who leave the country.

Accessibility: All insured persons have reasonable access to health care facilities. In addition, all physicians, hospitals, etc, must be provided reasonable compensation for the services they provide.
Now, some provinces charge health care premiums, and some do not. In no case does the provincial healthcare premium cover the actual per capita cost of healthcare. The excess is funded from general taxation. The previous BC government had already decided that the cost and hassle of administering health care premiums was not worth the effort. Therefore they are being phased out. Meanwhile, there are small increases in personal taxation. That’s all there is to it.
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