Thursday, March 26, 2015

Alberta government announces health care levy

The Government of Alberta has issued a news release outlining Budget 2015.  Included in that budget is a return to mandatory health care contributions by citizens with a taxable income over $50,000 a year.  Citizens who make less than $50,000 a year will not be subject to the new Health Care Contribution Levy (HCCL), which will come into effect on July 1, 2015.

According to the press release, the new levy "is capped at $1,000 annually, which is reached at $130,800 in taxable income".
"It is estimated that the HCCL will impact about 1.1 million Albertans."

"The new Health Care Contribution Levy is expected to raise $396 million in 2015-16. This amount will rise to about $530 million in 2016-17, the first full fiscal year for which the change will be effective."

Also from the budget: "Alberta Health’s 2015-16 consolidated expenses are budgeted at $18.9 billion, a 0.8 per cent reduction from 2014-15 forecasts, equal to $159 million. The ministry will also absorb about $950 million in growth pressures through significant spending restraint measures from Alberta Health Services, as well as lower payments to primary care networks and drug cost savings."

Related links:

Health Care Contribution Levy chart – Fiscal Plan page 87

Budget 2015 press release

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