Alberta's Bill 11 takes effect next week, shifting drug costs from public to private insurance
Private insurers will now pay first for medications, potentially raising premiums and out-of-pocket costs for seniors and retirees already on fixed incomes.
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Alberta becomes payer of last resort for drug and health expenses when Bill 11 takes effect next week — a shift that industry experts warn will raise private insurance premiums and place new costs on seniors and retirees.
Under the current system, Alberta's public plans cover 70 per cent of eligible drug costs. Members pay 30 per cent or a maximum of $35 per bill. Working families claim the remainder through employer benefits. Retirees without company plans enrol in separate private insurance covering the unpaid portion or drugs not under the public scheme.
Starting next week, private insurers will pick up the tab first. That reversal means private plans now shoulder costs they've historically avoided, and Manulife — one of Canada's largest insurers — has warned subscribers that "changes in premiums and increases to claims experience will be based on the demographics of each group."
The change affects two groups hardest. Albertans over 65 automatically receive Coverage for Seniors at no cost; the Non-group plan costs roughly $63 per month for individuals, $118 for a family of four. Both cover 70 per cent of drug costs. For retirees on fixed incomes without employer coverage, the new burden is immediate.
Larry Mathieson, president and CEO of Unison at Kerby Centre — a non-profit supporting adults over 50 — said the shift caught most seniors off guard. "This is not on the radar of a lot of seniors. They probably don't need an extra cost at this point," he said.
Bill 11 also permits doctors to run a dual-practice model, working in the public system while charging private patients for the same procedures. The drug-cost shift is the underreported part of that policy change.
The Federal Retirees Association of Canada criticized the move in a statement: "This measure shifts costs rather than reducing them. Transferring coverage and costs onto private plans also impacts plan members and retirees and may result in increased drug and health expenses — an avoidable burden at a time when affordability is already a concern."
Alberta government officials say the change brings them in line with other provinces including Nova Scotia and P.E.I. and will "help ensure public coverage remains available for those who need it." Manulife did not respond to requests for clarification about premium increases.
How much will private insurance premiums increase, and will insurers disclose those figures before Sept. 30?
How many retirees in Alberta will see their out-of-pocket drug costs rise, and by how much on average?
Will the government create any hardship exemptions or subsidies for low-income seniors?
We'll update this story as answers emerge.
The facts
When does Bill 11 take effect?
Bill 11 takes effect on October 3, 2026.
What changes under Bill 11 for drug coverage?
Private insurers will pay first for medications instead of Alberta's public plans. Previously, Alberta covered 70 per cent of eligible drug costs and members paid 30 per cent or a maximum of $35 per bill; now private plans shoulder those costs before public coverage applies.
How much does Alberta's Non-group private plan cost?
The Non-group plan costs roughly $63 per month for individuals and $118 per month for a family of four.
Which provinces does Alberta say it is aligning with?
Alberta officials say the change brings them in line with Nova Scotia and Prince Edward Island.
