Military families transferred to Ontario from other provinces or overseas will no longer have to wait 90 days to receive benefits under the Ontario Health Insurance Plan if a proposed new law passes, the province has announced.

Premier Dalton McGuinty said the proposed legislation would be introduced  Monday afternoon, along with other legislation that guarantees Ontario workers who leave their civilian jobs to serve in overseas conflicts with Canada's military reserves won't lose those jobs while on tour.

George Smitherman, deputy premier and minister of health and long-term care, said the elimination for military families of the three-month waiting period that typically applies to all new residents of Ontario will help up to 8,500 people each year.

During the waiting period, patients who aren't covered by other provinces' insurance plans must sometimes pay physician fees up front.

Cathy Priestman, whose husband and two children just spent three years in Europe with the military and are moving on to Alberta in June, called the premier's announcement "fabulous.

"Even if we just leave Ontario for a year and then come back, the 90-day waiting period just kills us," she said.

Labour Minister Brad Duguid said the special leave for reservists acknowledges their sacrifice for their country and community.

"Ontarians who put their lives on the line to serve our country should never have to worry that their civilian jobs back home are on the line," Duguid said in a statement.

According to the province, there are about 12,000 reservists in Ontario and several hundred serving abroad at any time.

The proposed legislation would also protect the jobs of Ontario reservists serving tours of duty in Canada.