MSP Premium Changes Effective Jan. 1, 2017
This page contains information for group administrators on MSP Premium Changes that took effect Jan. 1, 2017.
For information on the 50 per cent reduction to MSP Premiums that will be effective Jan. 1, 2018, click here.
A table illustrating 2016 and 2017 premium rates, premium assistance levels, and new rate (subsidy) codes follows. Beneficiaries that are currently receiving Regular Premium Assistance will automatically be adjusted to the new rates in 2017. There is no need for these beneficiaries to re-apply.
The calculation of MSP rates has been updated: as of Jan. 1, 2017 the MSP premium rate for two adults will be twice the amount of the single adult rate. There is no longer a discount.
On Sept. 15, 2016, the government of British Columbia announced updates to the previously published 2017 MSP premium and Regular Premium Assistance rates. The planned 4% increase has been cancelled. As a result, the full premium rate for one adult will not increase and will remain at the 2016 rate of $75.
In addition, rates for those receiving Regular Premium Assistance will be reduced by about 4% beyond what was announced with Budget 2016.
2016 (Current Rates)
|January 2017 (New Rates: Updated Sept. 15, 2016)|
|Rate Code||Adjusted Net Income||One Person||Family of Two||Family of Three or More||Rate Code||Adjusted Net Income||One Adult||Two Adults in a Family||Family of Three or More|
|A||$0 - $22,000||$0.00||$0.00||$0.00||H||$0 - $24,000||$0.00||$0.00||No premiums for children|
|B||$22,001 - $24,000||$12.80||$23.20||$25.60|
|F||$24,001 - $26,000||$25.60||$46.40||$51.20||I||$24,001 - $26,000||$11.00||$22.00|
|G||$26,001 - $28,000||$38.40||$69.60||$76.80||J||$26,001 - $28,000||$23.00||$46.00|
|E||$28,001 - $30,000||$51.20||$92.80||$102.40||K||$28,001 - $30,000||$35.00||$70.00|
|C||Over $30,000||$75.00||$136.00||$150.00||L||$30,001 - $34,000||$46.00||$92.00|
|M||$34,001 - $38,000||$56.00||$112.00|
|N||$38,001 - $42,000||$65.00||$130.00|
As of Jan. 1, 2017, minors and dependent post-secondary students will not be charged MSP premiums. This includes all minors, such as international students. Group administrators may need to adjust the collection of fees and/or payroll deductions to remove MSP premium components for minors and dependent post-secondary students.
A dependent post-secondary student is a B.C. resident who is older than 18 and younger than 25 years of age, in fulltime attendance at a recognized post-secondary institution, and supported by a beneficiary who is the person’s parent or who stands in place of the person’s parent who stands in place of the person’s parent . A dependent post-secondary student was previously referred to as an "overage child".
A dependent post-secondary student may include a student enrolled in full-time studies at an accredited trade school, technical school or high school.
Special invoice distribution date: To allow extra lead time to prepare for changes, production and distribution of the January 2017 invoices will begin in early December 2016. This will include information to identify employees whose premium amount will change as a result of the 2017 rates.
The Group invoice design is not changing, but the data in the existing invoice design will change as indicated in the invoice sample below.
- The "SIZE" column will continue to show the family size, which may be larger than the billable number of individuals. By comparing the CURRENT column and RATE column to the 2017 MSP Premium Rates Transition Table (above), Group Administrators can derive the number of adults on an account (i.e.: those that are charged premiums) and their adjusted net income.
- The “RATE” column will reflect the new Premium Rate (Subsidy) Codes.
- The “CURRENT” column will show the new Premium Rate amount.
- The “CODE” column will show a number “9” (along with any other applicable Adjustment Codes) to indicate accounts where the premium amount for 2017 is different than 2016.
For the January 2017 invoice only, look for this "9" to find any premium changes from 2016 to 2017.
Sample January 2017 Invoice
|0000001||M O Smith||04||C||150.00||0.00||150.00|
|0000002||J L Jones||03||C||150.00||0.00||150.00|
|0000003||B F Johnson||04||C||75.00||0.00||9||75.00|
|0000004||T R McDonald||10||J||23.00||0.00||9||23.00|
|0000005||R H Green||06||L||92.00||46.00||C9||92.00|
|0000006||K G Anderson||02||C||150.00||0.00||9||150.00|
|0000007||O P Douglas||03||K||35.00||-35.00||D9||35.00|
Looking at this invoice sample and comparing it to the 2017 MSP Premium Rates Transition Table, the following can be determined:
- Smith, family of 4 = 2 adults, 2 children with ANI over $42,000.00. Same premium rate as 2016.
- Jones, family of 3 = 2 adults, 1 child with ANI over $42,000.00. Same premium rate as 2016.
- Johnson, family of 4 = 1 adult, 3 children with ANI over $42,000.00. New premium rate for 2017 as indicated by “9” in Code column.
- McDonald, family of 10 = 1 adult, 9 children with ANI $26,001 - $28,000. New premium rate for 2017 indicated by “9” in Code column.
- Green, family of 6 = 2 adults, 4 children, including new spouse/dependent added with ANI $30,001 - $34,000. New premium rate for 2017 indicated by “9” in Code column, as well as “C” for “Add Dependent”.
- Anderson, two adults with ANI above $42,000 – no longer discount for couples. New premium rate for 2017 as indicated by “9” – increase of $14.
- Douglas, family of 3 = 1 adult, 2 children with ANI $28,001- $30,000. Spouse has been cancelled from account since the last invoice. New premium rate for 2017 as indicated by “9” in Code column, as well as “D” for “Cancelled Coverage”.
To obtain family size, the number and age of children, and other account details, group plan administrators may also refer to their Employer Record Cards.
Beginning in January 2017, new rate (subsidy) codes will appear on group plan administrator MSP invoices for those who administer premium assistance. The specific rate (subsidy) codes are as follows:
|Band||Adjusted Net Income||Premium Rate Code|
|1||$0 - $24,000||H|
|2||$24,001 - $26,000||I|
|3||$26,001 - $28,000||J|
|4||$28,001 - $30,000||K|
|5||$30,001 - $34,000||L|
|6||$34,001 - $38,000||M|
|7||$38,001 - $42,000||N|
For more information, please see these frequently asked questions and answers regarding the MSP premium and premium assistance changes.