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November 4, 2002
Liberal government’s planned cuts to Pharmacare force Municipal Pension Plan to consider further reductions to retiree health benefits
The Campbell government is working on the implementation of further cuts to the Pharmacare program, which will affect all British Columbians, including pension recipients. If the Liberals proceed as planned, in January 2003, Pharmacare benefits will be based on income. People will be expected to cover the costs of drugs up to 2 to 3% of their net family income. For example, a family with a net income of $20,000 will be expected to pay the first $600 of the cost of drugs. For seniors over age 65, the current deductible is $275.
What are the possible cuts to pension benefits?
The Municipal Pension Plan has already had to cut back on health benefits by requiring retirees to pay 50% of the MSP premium. If the Liberal government proceeds with its plans, the pension Board of Trustees proposes making the following further cuts:
- Member and dependents to pay 25% of premiums for extended health and dental benefits
- Extended health deductible to increase to $100 – up from $25
- Physio and massage therapy combined capped at $600 annually – no limit currently
- Elimination of coverage for expenses incurred outside of Canada
- Payment of the proportion of extended health premiums depends on your years of pensionable service; the payment schedule will be revised so that you will not reach the maximum subsidy of 75% until you have 10 years of service – a change from the current 5 year schedule to reach the maximum subsidy of 100%
- Co-insurance for dental benefits decreased to 70% – down from 75%
- 12 month dental recall – current dental recall is 6 months
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Two benefit improvements will also be implemented at the same time:
- Increase life time maximum under the extended health plan to $100,000
- Extend coverage to retirees living outside BC but in Canada
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| Campaign to Stop Pharmacare Cuts |
| If the Liberal government backs off its plan to reduce Pharmacare benefits, the Municipal Pension Plan will not have to carry out all the proposed benefit reductions. We encourage you to voice your opposition to Pharmacare cuts by:
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- speaking to your MLA
- writing letters to the editor and calling talk shows
- joining coalition campaigns to protect Pharmacare
- taking part in the Seniors’ Action rally in Victoria on November 26, 2002; watch your bulletin boards for further details.
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