Canada’s Public Service Health Care Plan (PSHCP) is an important health insurance program for federal workers, pensioners, and members of groups like the Canadian Armed Forces (CAF) and the Royal Canadian Mounted Police (RCMP). It helps cover hospital visits, medicines, and other health services for them and their families.
April , 2025, the government will change how much employees, pensioners, and employers contribute to this plan each month. This decision follows a review of rising healthcare costs and how much people use the services. The goal is to make sure everyone shares the costs fairly while keeping the plan strong and helpful.
These new rates will first appear in the March 2025 pension payments, giving everyone a little time to prepare. The government says it will keep checking the rates regularly, and pay offices have been told how to handle the changes.
Overview of the PSHCP and Who It Covers
The PSHCP provides three main types of health coverage:
- Regular Supplementary Plan – Basic extended health and hospital care.
- Full Comprehensive Plan – More complete coverage, especially useful for Canadians living abroad.
- Relief Option for Pensioners – Lower rates for pensioners with low income.
This plan treats active employees, pensioners, and military/RCMP members differently when setting contribution amounts. Employers also help by paying a big share of the costs.
New Contribution Rules Starting April 1, 2025
The government reviewed how much people are using the plan and how much it costs. Based on this, they decided:
- Pensioners will pay more under both Supplementary and Comprehensive plans.
- Hospital care rates are adjusted for those who choose better hospital service levels.
- Employer contributions will stay the same.
- A special lower rate is still available for low-income pensioners through the Supplementary Relief option.
Explanation of the Coverage Options
Basic Supplementary Coverage
- Employees and Military/RCMP don’t pay for extended health care but contribute for higher hospital levels.
- Pensioners split the cost of health services and pay full hospital care fees if they choose Level II or III.
- Pensioner Relief cuts the costs to just 25% for those on low income or getting GIS.
Full Comprehensive Plan
- Offers wide coverage for those with greater medical needs or who live abroad.
- Employees and CAF/RCMP members have full health coverage funded by the employer but still pay for higher-level hospital care.
- Pensioners carry a bigger share of costs, especially for hospital care at higher levels.
Special Help for Pensioners in Need
- Pensioners with lower income may qualify for the Supplementary Relief Provision.
- This plan lowers how much they pay for extended health care.
How Much Employers Pay
Employers help cover the costs of the PSHCP by paying a flat rate:
- Employer Monthly Rate: $179.39
- This amount is used to:
- Cover employees during leave without pay.
- Calculate taxes for workers in Quebec.
- Help other small government employers who also use the plan.
Who Will Feel the Impact?
Employees and Military/RCMP
- No changes to basic Level I hospital care (still free).
- Slight increases for those who want Level II or III hospital services.
Pensioners
- Will see the biggest increase in payments, especially under Comprehensive plans.
- Those who qualify for pensioner relief can still get lower monthly rates.
Employers
- Their cost remains the same but continues to support most health care costs for active workers.
Smart Tips for PSHCP Members
- Review Your Health Plan – Make sure it still fits your needs, especially if you’re a pensioner.
- Plan Ahead for New Rates – Start adjusting your budget now to handle the changes.
- Talk to Plan Experts – If you’re unsure about your coverage or payments, ask your pay or pension officer.
- Check for Relief Eligibility – Pensioners should see if they qualify for the lower-rate plan.