SOMBA K'E/YELLOWKNIFE - Proposed changes to the territory's extended health benefits program would mean someone making a six-figure income could still claim part of their prescriptions and dental care, even if they have third-party insurance.

According to the Department of Health and Social Services, 3,167 non-aboriginal Northerners don't have third party insurance, meaning that more than 17,000 people do. Great Slave MLA Glen Abernethy said even if the GNWT started covering half of the 20 per cent of prescriptions that insurance companies don't pay for, that money would add up.

Abernethy estimates extending coverage to people who already have insurance could cost the government at least $400,000 more per year.

"If people with insurance can apply for a top-up, this program is going to cost the (GNWT) more in the long run," he said.

Dana Heide, assistant deputy minister of Health and Social Services, said the department hasn't crunched the numbers on how much extending coverage to people above the income thresholds would cost and said the department doesn't know how much people now pay for prescriptions when they have third party insurance.

The department is putting forward two scenarios: one where all non-aboriginal Northerners making less than $30,000 per year would get full supplementary benefits and another where the threshold would be $50,000. People earning more than those incomes who have children would also be eligible for 100 per cent supplementary coverage, depending on how much they make. People making more than the income thresholds would also get a percentage of their extended benefits covered and if they had insurance they could apply to get a percentage of the leftover costs reimbursed.

A more detailed breakdown of the proposal is available on the department's website.

Extended health benefits or supplementary benefits cover costs of services not paid for by the basic territorial health care plan but often covered by employer-provided private insurance, such as dental care, prescriptions and eyeglasses. Aboriginal northerners are covered under the federal Non-insured Health Benefits program.

Under the current program for non-aboriginals, only seniors, people on income support and people with specified conditions qualify for the territory's extended health benefits. In 2008-2009, the GNWT spent $6,187,180 on extended benefits.

Abernethy said the department should be presented alternatives to income-based thresholds and a graduated payment scale.

"I see all sorts of additional costs. I don't see any cost savings and I see people leaving the NWT," he said. "It's ridiculous."

Abernethy said whatever program the department decided on, it would have to ensure the plan wasn't an incentive for businesses to stop offering third party insurance.

"We don't want to make it so good employers stop providing insurance packages and we'd get stuck with providing insurance for everybody. We would never be able to afford that. It would bankrupt us," he said.

Heide said the department was keeping that in mind.

"That's always a concern with any health benefit program, that if you do it, whoever is doing it currently will stop," he said.

In a letter addressed to the premier, Abernethy asked cabinet to consider alternatives to the income threshold, such as purchasing third party insurance for low-income families and making it mandatory for seniors and people with specified conditions to have such insurance, even if the GNWT had to purchase it.

Last year, the department scrapped a proposal to cut coverage to high income seniors and persons with disabilities after intense public outcry from people who said they'd leave the territory if they had to pay for their extended benefits.

Heide said he doesn't expect anyone to leave the NWT on account of the changes.

"We think there is an affordability line. We think there's a responsibility for people to share in the cost of their health care," he said. "Before people leave they should check health benefits elsewhere. Even with a co-payment we are far more supportive than other provinces."