Applying for Regular Premium Assistance
Government subsidized premium rates are available to residents who meet all of the following requirements:
- They have been a resident in Canada and been a Canadian citizen or holder of permanent resident status (landed immigrant) for the last 12 consecutive months.
- They are not the child of another beneficiary of MSP.
- They are not exempt from liability to pay income tax by reason of any other Act.
- Their adjusted net income for the preceding year did not exceed a given level (indicated on the front of the Application for Regular Premium Assistance).
Regular Premium Assistance Year
The Regular Premium Assistance year runs from July 1 of one year to June 30 of the next year.
HIBC requires authorization from the employer/pension office to be able to adjust an employee’s premium rate. By signing the “authorization” on the Application for Regular Premium Assistance, the employer is aware of any adjustment to a person’s premium rate and accepts responsibility for any future premium adjustment HIBC makes based on information obtained from the Canada Revenue Agency (CRA).
Regular Premium Assistance for a New Employee
If you are enrolling a new employee and the employee is eligible for subsidized premiums, please have him/her complete an Application for Regular Premium Assistance and send it with the application for group enrolment. If he/she is already receiving Regular Premium Assistance, simply indicate this on the employee’s group application and we will provide the same subsidy level.
Note: If your group plan does not authorize Regular Premium Assistance it may be to the employees/pensioners’ advantage to pay their premiums directly to MSP rather than through your group plan. If this is the case, please have them contact HIBC or visit the HIBC website to access enrolment applications to obtain their own coverage.
Calculation of Adjusted Net Income
Regular Premium Assistance is based on the previous year’s adjusted net income. Adjusted net income is a person’s net income (or a couple’s combined net income) as determined by the CRA minus any of the following deductions allowed by MSP.
$3,000 each for:
- a spouse
- an applicant and/or spouse age 65 or older
- each child enrolled on the same account (less one half of the child care expenses claimed)
- a disability claim allowed by the CRA for the applicant, spouse or child enrolled on the same account
Additional deductions allowed by MSP:
- Universal Child Care Benefit reported on Line 117 of the Income Tax return.
- Registered Disability Savings Plan income reported on Line 125 of the Income Tax return.
If the difference (adjusted net income) is at or below the allowable amount (indicated on the front of the Application for Regular Premium Assistance), a subsidy is available.
Permanent Premium Assistance
For group members who receive Regular Premium Assistance, MSP will, on an ongoing basis, verify income with the CRA, thus eliminating the need for most of these members to re-apply in subsequent years.
Verification of Adjusted Net Income
As authorized by the applicant’s signature, each year MSP verifies income information with the CRA to ensure the applicant is receiving the level of assistance for which he/she is eligible.
Eligibility is based on a person’s net income for the preceding year, combined with that of his/her spouse, if applicable, less deductions for age, family size, disability and any reported Universal Child Care Benefit and Registered Disability Savings Plan income. If required, MSP premium rates are adjusted upward or downward as of the date the assistance is effective. If the adjustment is retroactive and the rate increases, you will be debited for the difference in premiums. It is then your responsibility to recover this amount from the employee/pensioner, if applicable. If the rate is adjusted, you will be advised in writing.