Alberta might eliminate health premiums

It's for the first time Alberta Premier Ed Stelmach is talking about the possibility of eliminating health care premiums as part of his party’s next election platform.

Even though Alberta has been awash in surplus cash for years, the Progressive Conservative government has resisted the idea of dropping health premiums, which only exist in three provinces.
But now Stelmach is signaling that a policy change may be in the works for premiums, which cost $1,056 per year for families and $528 for singles.

Earlier this week Ontario's premier McGuinty announced that despite soaring government revenues, health tax is not going to be scrapped for Ontarians. (read related article here)

“The revenue is close to $1 billion,” he told The Canadian Press in a year-end interview.
“There are a number of ideas coming forward from people that are looking at developing policy positions for the campaign. But we’re far from making any kind of decisions.”

Health Minister Dave Hancock said he has been talking to government caucus members for months about how the province can eliminate or at least reduce health premiums for some people.
Hancock says he would like to see the province create incentives for people to lead healthy lifestyles. "Whether we collect it as a premium or we collect it as tax, we should give people credit for the things that they do to remain healthy," he said Wednesday in an interview.

The message to Albertans would be: "We can take health-care premiums off, but you have to do something for it."

“That’s what I’m promoting, that we take a look at how you can earn your premium back by doing some pre-screening tests, by engaging in health activity, those sort of things.”

The group Friends of Medicare was delighted to hear that the government appears to have had a change of heart over health premiums, which are also charged in Ontario and British Columbia.

“This is the time to get rid of these premiums. We’ve never been wealthier,” said Suzanne Marshall, executive director of the Edmonton-based lobby group.

Edmonton Sun

Dalton McGuinty says: no scrapping of annual health tax

There's no chance the annual health tax of up to $900 a person will be scrapped, according to Ontario Premier Dalton McGuinty, despite soaring government revenues and a looming legislative review of the levy.

While the Liberal government will launch an examination of the controversial tax in the New Year, McGuinty struck a decidedly Grinch-like tone yesterday for those who hoped he might give taxpayers a yuletide surprise.

"That was raised during the course of the campaign. I dealt with that very specifically and straightforwardly and said, `No, we cannot eliminate or reduce our health tax,'" the premier said in an interview with CJBK radio's Steve Garrison in London.

"We need that money to continue to invest in our continuing capacity to assure that we've got health care there for people when we need it," he said.

The health premium, which was introduced in the 2004 budget just months after McGuinty had won power with a promise not to increase taxes, brings in about $2.6 billion a year.

Coincidentally, in last Thursday's economic statement, Finance Minister Dwight Duncan revealed that higher than expected personal and corporate tax revenues mean this year's income projections have grown by $2.6 billion, from $91.5 billion to $94.1 billion.

Progressive Conservative Leader John Tory, who campaigned to phase out the health tax, said the surplus proves the Liberals could afford to scrap the premium.

But Duncan also disclosed in his economic statement that spending would rise by $2.2 billion, to $93.3 billion from $91.1 billion.

McGuinty didn't think it was necessary to make apologies for retaining the health tax or for the broken promise of the 2004 campaign.

"We've got huge pressures associated with the delivery of health care, and what I said to Ontarians during the course of the campaign is that if I'm elected I will continue to invest in our health-care system to ensure that at all times we always have the capacity to care for each other in times of sickness," he said on CJBK.

About 42 percent of all taxpayers earn enough to pay the levy, which rises to a maximum of $900 a year, depending on income.

The Star

Editor's opinion:

"I hope they will use those billions to invest in efficiency, better management of health care institutions and IT so we can have that tax cut next time and make our health care system really accessible and free for everyone!"