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Health benefits, like pharmaceutical drugs, dental services and eyeglasses, will be covered for low-income individuals, but people with higher incomes will have to pay for these services, when the government's supplementary health benefits program comes into effect on April 1. - NNSL file photo

SOMBA K'E/YELLOWKNIFE - The government's new supplementary health benefits and drug program based on personal and household income comes into effect April 1, 2009, and will have low-income residents breathing a little easier while making those who can afford it pay for their benefits.

"The new supplementary health benefits program will provide coverage for those who need it the most," said health minister Sandy Lee, introducing the policy to media in the legislative assembly Thursday.

The policy was put in place so residents who do not have a benefits plan from an employer can purchase eyeglasses, drugs and afford dental services.

The majority of seniors don't have employer benefits though and Blake Lyons, who is president of the Yellowknife Seniors' Society, is not happy with the government's policy.

"They gave one terrible Christmas present to seniors in the North," he said.

The policy applies to non-aboriginal residents only. Aboriginal and First Nations residents will continue to receive 100 per cent of their eligible benefits through the Non-Insured Health Benefits program and the Metis Health Benefits program.

A resident's coverage will be based upon their - or their household's - net income level from federal income taxes.

Residents who earn less than a certain net income will be eligible for up to $1,000 in dental each year and $150 in vision care every two years.

Right now seniors older than 60 get 100 per cent of their eligible dental and drug benefits covered.

Under the upcoming policy, seniors older than 65 making more than $50,000 a year will have to pay for dental services, eyeglasses and drugs.

Lyons said seniors should keep their health benefits and pointed to the $22,000 the territorial government receives from the federal government for each citizen in transfer payments every year.

"Let's look at the senior. How much does government spend (on them) in the way of education? They are not going to schools anymore ... How many of them are in the correctional institutes? They are not your criminals - they are too old and tired for that," he said.

"Yes, (seniors) do take up a fair amount of prescription drug increases, but let's put it relative to all other areas where the money can be spent."

Lyons said only three per cent of the territory's population are non-aboriginal seniors and he wondered why the government was going after them.

"Basically what they are going to do is throw away dollars so they can pick up pennies," he said.

The minister and deputy minister could not say how much of the population this policy would affect. Lee said the implementation and operation of the new policy would be "cost-neutral."

Along with seniors, residents with specified medical conditions that have prescriptions covered because it is contained on the government's eligibility list may have to pay for services now.

"This system has been seen as unfair because people with certain diseases are covered and people with other diseases aren't covered," said Greg Cummings, deputy minister of health.

"The program will be more sustainable and predictable for the government as benefit rules will be clear without exceptions," he said.

Also, government employees also have to choose either their employment coverage or the supplementary health benefit plan, and could not pick and choose either or to top up benefits.

Health officials said they consulted with groups around the NWT, but Lyons said - echoing concerns raised about the government's planned board merger - the department came to seniors groups after the policy was formed to tell them what they were doing and not looking for input.

The catastrophic drug program also comes into effect April 1 and means residents will pay a maximum of $3,000 or five per cent of their net income - whichever amount is higher - on prescriptions due to serious illnesses, with the government covering the rest.

Residents will have to sign-up for the benefits plan and have a registration card before they can access services, said Donna Manuel, director of health services administration.

If a resident purchases services after April 1 without a card, they will not be reimbursed later.

Alberta Blue Cross will administer the program.

Manuel said an advertisement campaign and reminders from physicians and pharmacists will be getting the message out to patients.

Officials also said they would rely on a media blitz to promote the policy. Health and social services flew two reporters - one from Fort Smith, one from Hay River - to Yellowknife to cover the presentation.