Alberta employers should begin preparing now for significant changes to employer-sponsored benefits plans under Bill 11 – the Health Statutes Amendment Act. Effective October 1, 2026, the legislation introduces new rules affecting how prescription drug and extended health benefits must be provided to active employees aged 65 and older. (Manulife)
While every employer’s benefits plan is unique, understanding these changes now will help ensure compliance and avoid unexpected costs later.
What is changing?
Under the new legislation, employers can no longer terminate, reduce or modify Prescription Drug or Extended Health Care benefits for active employees solely because they reach age 65. Employees who continue working beyond age 65 must continue to receive these benefits while actively employed. (Mathews Dinsdale & Clark LLP)
In addition, Alberta is moving to a “payer of last resort” model for eligible active employees. This means employer-sponsored benefits plans must pay eligible prescription drug and extended health claims first, before provincial seniors’ programs provide coverage. (Alberta Blue Cross®)
Who is affected?
These legislative changes apply broadly to employer-sponsored benefits plans, including:
- Fully insured group benefits plans
- Administrative Services Only (ASO) arrangements
- Employer self-funded or private employer-directed plans
Employers with self-funded plans should pay particular attention, as they assume the direct financial responsibility for eligible claims and may experience increased exposure to higher-cost prescription medications and extended health services. (Mathews Dinsdale & Clark LLP)
What isn’t changing?
The legislation applies specifically to:
- Prescription Drug Benefits
- Extended Health Care Benefits
It does not affect:
- Life Insurance
- Disability Insurance
- Dental Coverage
- Health Spending Accounts (HSAs)
- Lifestyle Spending Accounts (LSAs) (Manulife)
What employers should do now
Although the legislation does not take effect until October 1, 2026, employers should begin reviewing their benefits plans now.
Health Risk recommends:
- Reviewing current benefit termination provisions
- Understanding how the legislation affects your specific plan
- Evaluating any financial implications
- Planning any required updates before the legislation comes into force
Early planning provides more flexibility and helps ensure your benefits program remains both compliant and cost-effective.
How Health Risk can help
Every benefits plan is different, which means there is no one-size-fits-all solution.
Health Risk will be contacting clients over the coming weeks to schedule a complimentary Benefits Breakdown to:
- Review your current benefits plan
- Explain how Bill 11 affects your organization
- Discuss available options
- Develop a practical implementation strategy before October 1, 2026
Our goal is to help you remain compliant while continuing to create the greatest value from your employee benefits investment.
Need guidance?
If you have questions about how Alberta Bill 11 may affect your organization, we invite you to schedule a complimentary Benefits Breakdown with one of our advisors.
We Create Awesome Benefit Plans.
Sources: Alberta Blue Cross, Manulife, Mathews Dinsdale, Government of Alberta. (Manulife)
