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Drug Insurance Plan Premium – Tax Impacts

April 15, 2021
Drug Insurance Plan Premium – Tax Impacts

Did you know that if you have a Régie de l’assurance maladie du Québec (RAMQ) health insurance card, you have to be covered by a drug insurance plan at all times?

In fact, anyone living in Quebec on a permanent basis is required to be covered by a drug insurance plan at all times. This coverage is offered under two types of plans:

1. Quebec’s public drug insurance plan, administered by RAMQ;

2. A private plan, generally known as group insurance plan or benefits plan. This type of plan must offer basic drug insurance.

Which plan should you choose?

If you are eligible for a private plan offered through your employer, spouse’s employer or parent’s employer, you must enroll. On the other hand, if you do not have access to a group insurance plan, you must enroll in the RAMQ’s drug insurance plan. Generally, if you are insured under the public plan, you pay the annual premium to Revenu Québec. Click here if you want to enroll.

For 2020, the premium is:

  • Variable and ranges from $0 to $662 per person. Click here to find out more about the current annual rates;
  • Based on your situation and net family income;
  • Payable even if you do not buy any drugs;

The annual premium amount is adjusted on July 1st every year.

When is the premium payable?

Revenu Québec collects the annual premium when you file your tax return. For 2020, the premium is payable by April 30, 2021, when you file your tax return. The public plan premium is payable for every month you were not covered by a private plan.

Who does not qualify for the private and public plans?

People who are staying in Quebec temporarily are not eligible for public or private drug insurance, with some exceptions. They can purchase other insurance.

In addition, some people who are permanent residents of Quebec are not covered by the public plan or a private plan because they are insured under another law or program. For more information on individuals not covered by private and public plans, go to the Quebec health insurance page.

In conclusion, if you are a permanent resident of Quebec, you are required to have drug insurance. If you are enrolled in a private plan that provides basic drug coverage, you do not have to pay any premium. If you are not enrolled in a drug plan, a premium of up to $662 will be calculated in your 2020 income tax return.