The Canadian government has made important changes to the Public Service Health Care Plan (PSHCP), which supports thousands of public employees, pensioners, and military or police members. This program ensures that these groups get access to necessary health and hospital services across the country and even abroad.
Starting April 1, 2025, new contribution rates will apply to all members under this plan. This includes employees, pensioners, and members of the Canadian Armed Forces (CAF) and the Royal Canadian Mounted Police (RCMP). These changes come as healthcare costs continue to rise, prompting a review to maintain a fair split of expenses between members and the government.
The revised rates are intended to keep the plan financially strong while continuing to offer solid health benefits. Members will start seeing the new rates reflected in their March 2025 pension payments, giving them time to prepare. This update includes higher contributions for pensioners and new rate structures depending on hospital care levels and coverage types.
Understanding the PSHCP and Who It Covers
The PSHCP is a federal healthcare program that offers three types of health coverage:
- Supplementary Plan: Basic extended health and hospital coverage for Canadian residents.
- Comprehensive Plan: Wider health coverage, ideal for members living outside Canada.
- Relief Provision: A special reduced-rate plan for pensioners with lower incomes.
This plan supports different groups including:
- Active federal employees
- Pensioners
- Members of CAF and RCMP
Each group has different contribution responsibilities depending on their chosen coverage and hospital level.
New Updates Taking Effect on April 1, 2025
The government has reviewed healthcare costs and adjusted PSHCP contribution rates accordingly:
- Pensioners will now pay more for both Supplementary and Comprehensive plans.
- Hospital care costs are now higher for Levels II and III.
- Relief rates for low-income pensioners have been revised but remain discounted.
- Employers’ contributions will remain the same to help manage the increased plan costs.
These changes ensure both members and the government continue to share costs fairly.
Details of Each Coverage Option
1. Supplementary Plan
This is the standard plan covering hospital services and medical needs:
- Employees/CAF/RCMP: Don’t pay for Extended Health Provision (EHP); only pay for higher hospital levels.
- Pensioners: Pay half of EHP and full hospital fees for Levels II and III.
- Relief Option: Pensioners with limited income only pay 25% of EHP cost.
2. Comprehensive Plan
This plan covers broader healthcare needs:
- Good for those living abroad or needing more medical services.
- Employees/CAF/RCMP: Same EHP coverage by employers, but pay for higher hospital care.
- Pensioners: Must pay more for both EHP and full hospital costs.
3. Relief for Low-Income Pensioners
Designed for pensioners receiving the Guaranteed Income Supplement (GIS):
- Greatly reduced EHP and hospital costs.
- Aims to make health coverage affordable for seniors with tight budgets.
4. Employer’s Role and Contribution
- Fixed monthly employer contribution: $179.39
- This rate applies to:
- Paid leaves without work
- Certain provincial tax calculations
- Support for separate employers using the PSHCP
What These Changes Mean for You
Here’s how the rate adjustments will affect each group:
Employees and CAF/RCMP Members
- No big changes for basic coverage (Level I hospital care is still fully covered).
- Slight increases for Levels II and III hospital care.
Pensioners
- Expect increased costs, especially for Comprehensive Plans.
- Relief options still available for those who qualify.
Employers
- Maintain the same contribution despite rising costs.
- Continue to support affordable employee healthcare access.
Advice for PSHCP Members
To stay prepared and informed:
- Check Your Current Plan – See if your healthcare needs match your selected coverage.
- Plan Your Finances – Account for higher deductions starting April 2025.
- Ask for Help – Speak to your pay or pension office if you have questions.
- Explore Relief Eligibility – Pensioners should check if they qualify for reduced rates.
The new PSHCP contribution rates aim to support long-term healthcare coverage while balancing rising costs. By reviewing your current plan and understanding these updates, you can make sure your health needs continue to be met without surprises in your financial planning.