Canadian Medical Protective Association (CMPA) Rebate

The British Columbia Medical Association (BCMA) administers five major benefit programs that are available to practicing BC physicians and surgeons.  This post is the third in a series of five describing the various benefit programs. In previous posts I have discussed the Continuing Medical Education (CME) benefit and the Contributory Professional Retirement Savings Plan (CPRSP).

Most Canadian physicians are members of the Canadian Medical Protective Association (CMPA), the non-profit organization that provides assistance with malpractice issues. Membership dues are based on the physician’s type of practice. BC doctors are eligible to receive a partial rebate of their CMPA dues.

The amount reimbursed is the difference between the CMPA dues in the base year of 1985 and the current year’s dues, and is paid only for the months a physician was practicing in BC.

Physician’s earning less than $30,000 of eligible income in the previous calendar year will receive a pro-rated reimbursement.  Eligible income is fee-for-service income paid by the Medical Services Plan (MSP), sessional income and non-salaried earnings under a service contract with a government agency. It is my understanding that billings to ICBC and WorksafeBC are not eligible.

Gross Income Benefit %  
Over $30,000 100%  
$15,001 – $30,000 75%  
$10,001 – $15,000 50%  
$5,000 – $10,000 25%  
Less than $5,000 Nil  

In the case of new physicians in their first year of practice, the reimbursement amount is based on eligible income earned in the current year.

If consent hasn’t been given to the CMPA to release relevant information with respect to the reimbursement program, an application form will be sent out each January. Applications must be received by the BCMA by the end of February or the benefit is lost for the year.

Payments of the CMPA reimbursement to a physician are considered personal taxable income and are reported on a T4A slip. Payments made to a physician’s professional corporation are income to the company and a T4A will not be issued.

Non-members of the BCMA are entitled to receive the benefit, but must pay an administration fee of the lesser of 50% of the benefit or the balance of the equivalent BCMA dues, plus HST.

Future posts will address the remaining benefit programs:

John Moore, accountant for doctors, dentists, lawyers and other business professionals, Vancouver, British Columbia

About John Moore

I am a Chartered Professional Accountant (CPA,CA) based in Vancouver, BC who helps doctors, dentists, lawyers and other business professionals keep more of what they earn. I provide tax, accounting and financial planning services for professionals and business owners.
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3 Responses to Canadian Medical Protective Association (CMPA) Rebate

  1. JC says:

    2014 would be my first year as a unincorporated physician (sole proprietorship) Are T4As issued the CMPA rebate in this case? If not, where would I report the CMPA rebate? As “other income” in form T2125? Also, if the rebate for the 2014 year is issued in 2015, which year would I report it in? I am in Alberta, but I presume the answer is still the same. Thanks for your response and answer in advance. Cheers.

    • John Moore says:

      In BC, if the CMPA rebate is paid to a physician personally, a T4A will be issued. I am not sure how it is handled in Alberta. The CMPA rebate can be reported in the personal tax return on the T2125 Statement of Business or Professional Activities either as revenue or as a reduction in CMPA expense

  2. Good stuff I’ve bookmarked this in Digg under “Canadian Medical Protective Association (CMPA) Rebate | The Professional Edge”. So hopefully our friends can give you a visit. Keep up the good stuff.

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