Tag: Legal Aid

Are BC Taxpayers Getting Short Changed When it Comes to Subsidizing Medical Malpractice Insurance?


The above image was taken from the BC Government Website where they recently launched a “budget calculator” permitting the public to play around with various tax revenues and expenditures.  The calculator is far from complete, however, leaving many expenses out of bounds.  One expense which is absent is the CMPA fee subsidy.
I recently wrote how BC taxpayers subsidize the defence of doctors in medical malpractice lawsuits.  This issue has also received media scrutiny by legal reporter and former lawyer Alan Shanoff.  I questioned the propriety of this given the long term under-funding of legal aid and BC’s Justice System.
It seems that Ontario taxpayers will be receiving a break from this subsidy in 2012.  A longstanding reader of my blog who does not care to be named notes that taxpayers in Ontario will not be on the hook for CMPA fees for 2012.
The CMPA reports that “The payment of medical liability protection costs in Ontario is guided by two agreements. Firstly and as is the case in other provinces, Ontario physicians benefit from a program that reimburses them for a portion of their CMPA membership fees…For members, the substantial reduction in total CMPA fees translates into individual fees for 2012 that are at, or below, 1986 levels. As the reimbursement program is based on a 1986 threshold, the program will be suspended for 2012 while members “out-of-pocket” costs will remain consistent with previous years.
As things stand BC taxpayers will not get the same benefit with the public continuing to subsidize CMPA membership fees despite the CMPA “holding $572 million in unrestricted net assets”. I again ask who is a better beneficiary of the $50 plus million dollars the BC Government has used to subsidize liability insurance dues, the CMPA with half a billion dollars in unrestricted net assets, or BC’s poorest who require legal aid to gain access to justice?

Funding Legal Aid – Does the Government Have its Priorities Straight?


If you have a limited budget to support Legal Aid, who would you let access the funds, the poorest sector of society or the wealthiest?  You would think the answer is obvious but BC’s track record may just go against common sense on this issue.
The Government is receiving some heat from the Trial Lawyers Association of BC’s current campaign regarding the state of Legal Aid funding in BC.  In short the TLABC points out that Legal Aid in BC is “a seriously underfunded system.  The current and long-time lack of legal aid leaves too many people in need of help, and the lawyers involved have been working in a crisis situation for far too long“.
The Government of BC has recently announced that they will commit an additional $2 million in funding to the system.  This is a far cry from what’s needed to restore the system to functioning levels.  The concerns are not just coming from the TLABC but also the judiciary with the Chief Justice of the BC Supreme Court stating that prolonged underfunding has possibly put the judicial system “in peril.
This leads to the question of whether the money to properly fund Legal Aid is simply not available or whether the Government’s priorities lie elsewhere.  A good argument can be made for the latter given the Government’s choices for funding access to justice.
Despite the poor shape of BC’s legal aid system, The Government finds money to help some of the highest income earners with their legal costs.  I’m referring to the Canadian Medical Protection Association fee subsidy.
For those of you not familiar with the CMPA, they are a group that “provides professional liability protection for Canadian physicians in the form of advice and legal assistance“.  In other words, they defend civil suits against doctors in cases of alleged professional negligence.
As with any liability insurance, CMPA protection costs money.  The fees doctors pay for their professional liability insurance vary depending on practice area but overall are not particularly high.  These can be found here.   What you may not know is that the BC Provincial Government reimburses these dues to a significant extent.  Specifically the BC Government rebates “the difference between the current year CMPA dues and the dues for the base year 1985“.  That is, they pay the value of over 25 years of inflation.
So how much money are we talking about here?  I don’t have the current numbers but in 2008 the Victoria Times Colonist reported that “The B.C. government funnelled nearly $53 million through the B.C. Medical Association to the CMPA over the last three years“.
The CMPA, from a financial perspective, has done very well over the years.  They have accumulated over $3 billion in investment assets according to their 2010 report.  In fact, the CMPA reports that their financial position is so strong that “Excluding the funds committed to capital assets and a risk retention reserve fund, this leaves the Association holding $572 million in unrestricted net assets.“.  That’s over half a billion dollars of “unrestricted” assets.
As a BC taxpayer I can’t help but ask myself who is a better beneficiary of the $50 plus million dollars the Government has used to subsidize liability insurance dues, the CMPA with half a billion dollars in unrestricted net assets, or the folks who qualify for the below financial test for legal aid in BC:

As always, comments and feedback are welcome.

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ERIK
MAGRAKEN

Personal Injury Lawyer

When not writing the BC Injury Law Blog, Erik is the managing partner at MacIsaac & Company, based in Victoria, B.C. He is also involved with combative sports regulatory issues and authors the Combat Sports Law Blog.

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