Promise made, promise kept: MSP premiums drop by half Jan. 1

VICTORIA (NEWS 1130) – The NDP’s long-promised 50 per cent cut to Medical Service Plan premiums takes effect tomorrow.

The promise, made during the spring election campaign, is part of a broader New Democrat pledge to eliminate MSP premiums altogether within four years.

Kris Sims with the Canadian Taxpayers Federation says the move will save families hundreds of dollars a year.

“So, for the average two person adult home, that saves about $900 every year. That’s a big, big chunk of change. [We’re] very happy to see that happening… nice to have some good news to start off the new year.”

Sims admits while people who have their medical benefits paid for by their employer won’t see the savings directly, she would like to think companies will re-invest the money back into the economy.

“That money is still coming out of the big pot of money here in British Columbia and so hopefully, those savings are passed on in some way to the employees or the owners of the companies, the corporations, are able to make other investments in their business that helps benefit people.”

MSP rates go down, carbon tax goes up

Meanwhile, as MSP premiums are cut in half as of tomorrow, you will be paying more carbon tax come April.

BC’s version of the tax will jump to $35 a ton, making it the highest in Canada. Sims says you will feel that at the pump.

“You average cost for filling up an average car, say a Toyota Corola, will be about $5 extra, per fill up, just for the carbon tax. If you’re driving a truck or an SUV, it’s around $10 just for the carbon tax every single time you fill up.”

Sims adds the tax applies to home heating oil and natural gas, making them more expensive as well.

“Also all the stuff we bought. The groceries we bought, the products that we buy at stores. All of that needs to be trucked, and so of course that’s also a lot of money as well.”

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