Bumping this to update folks that it is still true: if you applied OUTLAND and are currently living in Ontario while waiting for PR, you can apply for OHIP.
Exactly how it works may vary. People have varying amounts of luck with the application process - sometimes it's easy but many are first refused and then appeal. Your eligibility date may also differ based on what Service Ontario counts as evidence that you are an AFP (Applicant for Permanent Residence) or have AIP (Approval In Principle - normally an inland term from what I understand).
The steps to take are exactly as outlined at the beginning of this thread. Here's how my process went:
* Applied from US in January 2017
* Received SA in Feb/March 2017
* Moved to Ontario September 2017 (as a regular visitor with plans to extend status if necessary)
* Received PPR January 2018
* Applied for OHIP January 2018
1. I gathered my three required documents: one for proof of address (tenant's insurance policy in my case), one with name and signature (credit card), and one with proof of status. For the latter I took our Sponsorship Approval letter and my PPR letter.
1b. I prefilled the application form at home. Note that if a question doesn't apply they want you to check the "no" box.
2. Go to a PUBLIC Service Ontario. The private ones (like in Canadian Tire) are not able to issue temporary health cards. In Toronto, for example, you can go to the Service Ontario at Bay and College.
3. If there's a reception line, they'll screen you to make sure you have all three documents and what your status is - I said that "I'm an applicant for permanent residency" which is how Service Ontario describes people in our situation.
4. At the Service Ontario desk, they should process your application. It is likely that they will refuse it due to the SA not being the right document. Technically, based on this thread, I believe they want a letter or document from the CIC/IRCC stating that you are eligible to apply for PR and have not been denied. I'm not sure. However, it is possible that the SA letter is enough to prove that. In my case it was - no questions asked. Perhaps the PPR letter helped but I don't remember them looking at it.
5a. If they accept the documents that you provide, they'll take your picture, issue you a health card number, and set your effective date to 90 days after you moved to Ontario (for me, that was December 2017). I'm not sure what happens if you received SA after you arrived in Ontario or if that was less than 90 days ago.
5b. If they don't accept the documents, ask for a refusal letter. They may be surprised by this request but you'll want it so you can appeal. Use the instructions in the thread above to send an appeal. From what I understand they will need you to sign a form so they can inquire with the CIC about your status. Once they get a response from the CIC they will let you know if they think you're eligible and what your effective date would be. It is possible that your AFP/AIP may not have occurred yet - apparently this technically happens close to the PPR date for many outland applicants. But either way, they will let you know, and this will ensure you receive the earliest possible effective date, even if it's only a month earlier than if you applied after officially landing as PR. The appeal process can take several weeks, but hey, you're a PR applicant so you're an expert in patience.