The Public Service Health Care Plan (PSHCP) in Canada is getting updated contribution rates starting April 1, 2025. This plan is a vital part of healthcare support for government employees, retirees, and groups like the Canadian Armed Forces (CAF) and the Royal Canadian Mounted Police (RCMP). It ensures that members and their families continue to have access to extended health and hospital care services.
These changes are part of a regular review process that balances the rising cost of health care with fairness in payments between employees, pensioners, and the government. For many pensioners, this means a higher monthly contribution, while employees will see only minor adjustments. Relief measures are also available for pensioners with low income.
With these new rates, the government hopes to keep the PSHCP financially secure while offering broad healthcare coverage. Affected members are advised to check the new rates and understand how their payments may change. The updated contributions will appear in the March, 2025 pension payment cycle, giving time to prepare.
Overview of Canada’s Public Health Insurance Plan for Public Servants
The PSHCP is a nationwide health plan made for:
- Federal government employees
- CAF and RCMP members
- Retirees and pensioners
It includes three major types of coverage:
- Supplementary Coverage – For general extended healthcare and basic hospital care.
- Comprehensive Coverage – For those needing more healthcare services, including retirees abroad.
- Supplementary Relief Provision – For low-income pensioners who receive financial help.
Employers also pay a big part of the contributions, keeping the plan affordable for workers and retired members.
Important Plan Changes Starting April 2025
Beginning April 1, 2025, the PSHCP contribution structure will be updated based on a detailed financial review. Key changes include:
- Higher contributions for pensioners, especially for advanced hospital care.
- Adjustments to hospital care charges under all coverage types.
- A steady employer contribution rate, despite rising healthcare costs.
- Updated relief contribution rates for qualified low-income pensioners.
Types of Coverage and Their Features
1. Supplementary Health Plan
This is the standard coverage that includes hospital stays (three levels) and extended medical services.
- Employees and CAF/RCMP: Employer pays for most of the extended health costs. Members only pay hospital rates at Levels II and III.
- Pensioners: Must pay half of the extended health costs and full hospital charges if they choose Level II or III.
- Relief Pensioners: If receiving GIS or low income, only pay 25% of extended health costs.
2. Comprehensive Health Plan
This includes broader health services, especially for pensioners living outside Canada.
- Employees and CAF/RCMP: Covered by employer for health services. Pay for hospital Levels II and III.
- Pensioners: Pay more for both health and hospital coverage.
3. Pensioner Relief Option
Pensioners with limited income or GIS support can get reduced rates. They need to apply and prove eligibility.
Employer’s Role in Cost Sharing
The government plays a major part in covering PSHCP costs for active employees and certain groups.
- Flat Rate Contribution: $179.39 monthly per employee
- Covers: All coverage levels and types
- Used for:
- Time off without pay (Leave Without Pay)
- Tax calculations in Quebec
- Contributions from some separate employers
How These Rate Changes Affect You
Employees and Military Members
- Most basic health contributions remain unchanged.
- Slight increase in cost for higher hospital care levels.
Pensioners
- Expect higher monthly payments, especially if enrolled in Comprehensive Coverage.
- May qualify for the Relief Provision to reduce costs.
Employers
- Contribution rate remains unchanged.
- Still covering most extended health costs for workers.
Steps You Should Take Now
- Review Your Plan
Check what type of coverage you have and if you still need it. - Adjust Your Budget
Prepare for possible increases starting April 2025. - Seek Guidance
Talk to your pension or payroll administrator for help. - Check Relief Eligibility
Pensioners should explore the Supplementary Relief Provision to lower payments.