Mr. Speaker, I thank the House for the opportunity to respond to the question raised in November by the hon. member for Renfrew--Nipissing--Pembroke concerning the Canada Health Act specifically excluding members of the RCMP and the Canadian armed forces from paying health care premiums.
It is the role of the Minister of Health to ensure that provincial and territorial health insurance plans operate in accordance with the Canada Health Act. The aim of the act is to ensure that all eligible residents of Canada have reasonable access to medically necessary insured services on a prepaid basis, without direct charges at the point of service for such services.
Provinces and territories have considerable leeway in determining how their share of the costs of their individual health insurance plans will be financed, provided they meet the criteria and conditions of the Canada Health Act.
The provinces and territories can fund health care through payroll taxes, sales tax, premiums, other provincial or territorial revenues, or a combination of these methods.
Premiums and health insurance taxes are permitted, provided that a resident is not refused coverage of medically necessary hospital or doctor's services because he is unable to pay that premium.
Alberta and British Columbia both have health premiums, and require direct payment of premiums by residents or their employer. These provinces have established premium payment assistance plans based on income. In these provinces, a person who does not have the means to pay the premium can apply for assistance from the provincial health insurance plan.
The Canada Health Act definition of insured persons includes members of the Canadian Forces, persons appointed to a position of rank within the RCMP, persons having a term of imprisonment in a federal penitentiary and persons who have not completed a minimum period of residence in a province or territory.
However, as residents of provinces, members of these groups are responsible for paying the appropriate provincial taxes. It is not necessary for provincial or territorial health insurance plans to provide coverage to individuals who are excluded under the Canada Health Act since they have health insurance coverage under other legislated programs.
In Alberta and British Columbia, these individuals do not register for health insurance coverage and do not pay for health premiums administered by the provincial ministries of health.
In Ontario, what is referenced to as a premium is really a provincial income tax and the premium varies between zero and $900 in proportion to an individual's taxable income. This differs from the previous premium program that operated in the province between 1950-89 where Ontarians paid fixed health premiums.
Then, as is currently the case in Alberta and British Columbia, the RCMP and the Canadian armed forces did not register with the provincial plan and were excluded from having to pay premiums.
As my colleagues know, the new Ontario health contribution came into effect on July 1, 2004. This contribution is a personal income tax created under the Ontario Budget Measures Act, 2004 and regulated by the Ontario Income Tax Act. Ontario is working together with the Canada Revenue Agency to collect and administer the contribution under the tax collection agreement between Ontario and the Government of Canada.
The Ontario health premium applies to individuals who are residents of Ontario on the last day of the taxation year. Non-resident taxpayers are exempt from the premium. People who work in Ontario but live elsewhere, for example in Quebec, will have premiums collected but are eligible for a refund.
Individuals with taxable incomes under $20,000 will not pay any health premium. The Ontario health premium is not linked to the eligibility of health care in the province, only to residency.
While RCMP officers and members of the Canadian armed forces are not covered by the Ontario health plan, if they are residents of the province they are required to pay the applicable Ontario taxes.