The B.C. NDP government's budget update explains that healthcare spending will rise 3.5% to $19.56 billion in the 2018-19 budget year, while Medical Services Plan premiums will be reduced by 50% before being eliminated altogether within four years. Finance Minister Carole James said the move will eliminate about $2.6 billion in annual revenue that would have accrued had premiums not been earmarked for elimination. The first reduction will cost the province $1.245 billion in 2018-19, resulting in couples saving up to $900 a year and individuals up to $450 a year. Companies that include the premiums as a benefit to employees will also see savings, as half of all premiums are paid by companies and are taxable employee benefits. The government will also set up a task force to advise on ways to eliminate premiums while replacing lost revenue. It also aims to spend $322 million over three years on a "comprehensive response" to the fentanyl overdose epidemic, and establish a ministry of mental health and addictions with an administrative budget of $5 million.
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