Effective October 1, 2026, important changes will be implemented through Bill 11, the Health Statutes Amendment Act, 2025 (No. 2), that will have immediate implications for Alberta employers.
Termination of Benefits at 65
The most significant change from an employer’s perspective is that employers must continue certain prescription drug and supplemental health benefits for as long as an employee remains actively employed, regardless of age. This means that employers can no longer have certain prescription drug and supplemental health benefits terminate or reduce at the age of 65.
Dental, life insurance, disability and travel insurance will not be impacted by the above change and can still be subject to changes at the applicable termination age, depending on the employer’s plan terms.
Private Plans Pay First
Where an employee has both private coverage – such as employer group benefits or a personal benefit plan – and government-sponsored coverage, the private plan must generally be billed first. Government coverage will become the payor of last resort for affected benefits. This means that employers may see more claims flow through their group benefit plans.
What Should Employers Do Now?
- Audit benefit plan documents and update employment documents: Identify any age-based restrictions in current benefit plan documents and whether they remain appropriate. Consider whether any current employees over the age of 65 need to be reinstated into your employee benefit plan. Review employment agreements and other applicable employment documents to ensure compliance with the new legislation.
- Assess cost exposure: Employers should consider how the shift to private-plan-first coordination may affect group benefit costs, particularly where their workforce includes active employees or dependents age 65 and older.
- Coordinate with insurers and advisors: Employers should work with benefits advisors, insurers and legal counsel to update plan design where necessary, develop renewal and pricing strategies, confirm claim coordination procedures, and prepare employee communications before the amendments take effect.
If you have any questions regarding this update, please contact Michelle McKinnon and Hannah Rizzotti.