Dear Editor:
The Medical Services Plan of British Columbia needs an immediate overhaul. I share columnist Keith Baldrey’s concern about rising MSP premiums (Middle-income Earners Feel the Squeeze from Rising MSP Premiums, Jan. 6).
Every month, we pay our MSP premiums and have done so for years. Interestingly enough, I recently discovered that, with the exception of only two individuals, none of my friends pay MSP personally. I was shocked to find that they are not even aware of how much the premiums cost.
The reason for their ignorance is hardly surprising; either their current employers pay the premiums on their behalf or in the case of my retired friends, coverage is still provided by their previous employers. Examples of various people who fall into the group include: a retired municipal worker and his spouse, a Canada Post employee and his family, bank employees and their families, retired Air Canada staff, retired Crown corporation employees, federal workers and teachers. Large companies also have (employee) benefits that include payment of MSP premiums.
The list goes on.
My husband and I are retired. We have no company pension plan other than CPP for us both and OAS for my husband. Our MSP premium is now $136 per month or $1,632 per year.
Why are these fees not tax deductible?
The people who have it paid on their behalf do not declare this as a taxable benefit.
At the very least, it should be a taxable benefit for those who don’t need to pay it and it should be tax deductible for those of us who do.
In actual fact, premiums should be abolished and as Mr. Baldrey stated in his Jan. 6 column, “it is time to tie MSP premiums to income levels.”
Furthermore, our provincial government would save a lot of money by collecting premiums though our B.C. income tax. Staff would not be needed to prepare statements, postal costs would vanish and the collections department who chase in arrears payments would no longer be needed.
Of course, our finance minister will make a decision on this. Keep in mind, that as a civil servant, his own premiums are taken care of and he does not declare this as a taxable benefit – so why will he care?
Susan Stoddart
Lions Bay
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