The Costs – Premium

Generally speaking, persons covered by the public plan must pay a premium, whether or not they purchase prescription drugs. The premium is collected every year by the ministère du Revenu du Québec when income tax returns are filed. For example, the premium for 2011 will be collected in the spring 2012, when income tax returns for the 2011 taxation year are filed. Persons who pay a premium to the public plan must complete Schedule K of their Québec income tax return.

The amount of the annual premium varies from $0 to $563 per adult, depending on net family income. This amount is in effect from July 1, 2011 to June 30, 2012.

Certain persons insured under the public plan don't pay a premium. These include:

• holders of a claim slip (carnet de réclamation) issued by the Ministère de l'Emploi et de la Solidarité sociale;
• persons age 65 or over receiving 94% to 100% of GIS;
• children of insured persons, If they are under age 18 or If they are 18 to 25, full-time students, without a spouse and live with their parents.

About private plans

When doing their income tax return, taxpayers must indicate whether they were covered during the year by a private plan or by the public plan.

Persons under age 65 who were covered by a private plan during the entire year don't pay the public plan premium. However, those who were covered by a private plan during part of the year must pay the public plan premium for the rest of the year by completing Schedule K of their Québec income tax return.

Persons age 65 or over who are covered by a private plan must pay particular attention when completing their income tax return. Those who have basic coverage (at least equal to public plan coverage) are not required to pay the public plan premium. However, those who have only supplemental coverage are required to have the basic coverage of the public plan and must therefore pay the premium applicable to their situation by completing Schedule K of their Québec income tax return.

Persons who are eligible for a private plan must join that plan. Those who aren't must pay the public plan premium, without being entitled to any of its benefits. Because they are supposed to be covered by the private plan for which they are eligible, they are not allowed to register for the public plan. Similarly, persons who don't register for the public plan even though they are eligible for it must nevertheless pay the public plan premium. In other words, these persons pay a premium but have no coverage. How can they avoid this situation? By registering without delay for the plan for which they are eligible!