You might want to try another Service Ontario location.
After I got PER, I went to the closest Service Ontario office. I knew (from this forum) that they had to refuse my application so I could appeal and get my OHIP. When I told a lady that I want to apply for OHIP and showed my PER, she said that PER does not prove my eligibility for OHIP. I showed her the list of documents that "prove"eligibility (List #1 from the Ontario Health Insurance Coverage Document List), but she replied "Neither me or anyone else at our location is trained to process OHIP applications for temporary residents". I asked her to give me any "refusal" letter, but she said that she could not refuse my application because my application was not complete (did not contain a proof of eligibility). When I was leaving, she said that I should go to the "main" Service Ontario location in the city and gave me an address.
When I got to this "main" office, it was very smooth:
- Hi, I was found eligible to apply for PR and I want to apply for OHIP
- No problem, give me a letter CIC sent you
After that she took a huge binder, found a PER template for a PhD stream, compared it with my PER, and said the letter was fine. After that I filled some form, provided a signature sample, and they took a picture of me. She gave me a letter confirming that my OHIP starts on [PER date + 3 months] and ends on [PER date + 1 year - 1 day]. She also said that I would need to apply for new OHIP once I got PR.