It is up to provinces to define the eligibility criteria for their prescription drug benefit plans and other social programs. Some provinces have chosen to provide benefits for low-income seniors based on their eligibility for the guaranteed income supplement, GIS, provided under the federal old age security program, (OAS).
Under the OAS, seniors with limited income may be eligible for the GIS. The amount of GIS benefits is dependent on both the marital status and the family income.
For a single, widowed or divorced pensioner, the monthly maximum GIS, which is adjusted to CPI inflation every quarter, currently stands at $548.53. The maximum amount for the whole year, 2003, is $6,496.26. This amount is in addition to the OAS benefit of $5,497.62 in 2003. The GIS benefit is reduced at the rate of 50¢ for every dollar of other income, non OAS and non-GIS. This means that the GIS benefit is fully phased out when other income reaches $12,992.
For a two-pensioner couple, each spouse can currently receive GIS benefits up to $357.30 per month, $4,255.83 for the whole year, in addition to OAS benefits of $5,497.62 each. The GIS benefit is reduced for each spouse at the rate of 25¢ per dollar of other family income. For the couple, this implies that total GIS benefits are reduced by 50¢ for every dollar of other income and are phased out when other family income reaches $17,020.
Similar benefits are available for low income pensioners' spouses and widow(er)s who are between the ages of 60 and 64.
Newfoundland and Labrador's seniors drug subsidy Program provides prescription drug coverage for residents 65 years of age or over who are in receipt of the guaranteed income supplement. Even though the eligibility for the program is based on the GIS, it is the Government of Newfoundland and Labrador that designed the program in this way and is ultimately responsible for setting the eligibility criteria. The federal government has therefore no control over the design of provincial programs.