Manitoba mulls new health care tax -- Heath care premium could make up for Ottawa changing rate of health care increases

By Austin Grabish, CBC News Posted: Sep 13, 2017 12:22 PM CTThe Manitoba government is considering introducing a health care tax that residents would be forced to pay based on income.Manitoba Premier Brian Pallister made the announcement at a press conference Wednesday morning. The government said health care premiums could help Manitoba maintain its level of care in the wake of Ottawa reducing the amount federal health transfers will go up by over the next several years.The province signed an agreement with the federal government last month ending a standoff over funding. The deal will see Manitoba get three per cent annual increases to the Canada Health Transfer and $399.6 million over 10 years for mental health and home care services. Pallister says, compared to the old model, the cash Ottawa is offering leaves Manitoba short $2 billion over 10 years, and asking Manitobans to pay premiums on health care could make up for it. "It's most certainly a tax increase there's no doubt of that and I don't think we should couch it in any way different from that," Pallister said. The new tax would be based on income and pay directly for health care costs, Pallister added. The province is asking Manitobans to weigh in on the plan for premiums through a new online survey. Also in the survey are questions about the upcoming legalization of pot. (more)
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Don Quixote Note: Contrast this to the new proposal in B.C. that will cut the premium in 1/2 on Jan 1, 2018 and eliminate it completely within 4 years.

1. MSP premiums cut by 50 per cent

Starting on Jan. 1, 2018, the provincial government will cut Medical Service Plan premiums in half for everyone. Unlike the promise from the previous government, there will be no need to apply for the rebate. The government is also announcing plans to establish an MSP Task Force to eliminate premiums and replace the revenues by 2021.