Alberta Bill 11: Legislative change taking effect in summer 2026

The Alberta government passed Bill 11, the Health Statutes Amendment Act, 2025 (No. 2), with implementation expected this summer (exact date to be confirmed). These legislative changes will directly affect how we pay drug and select health care expenses for Alberta plan members. 

We’re providing an overview of how this legislation affects group benefits prescription drug plans. This Focus Update reflects Sun Life’s interpretation of Bill 11, based on the currently available information, which may be updated as additional information is released.

What’s Changing

There are two key changes in the legislation that impact employer group benefits plans:

1. The Alberta Government Becomes Payer of Last Resort (all plans)

The Alberta government will become the payer of last resort for prescription drug and certain supplemental health benefits. If private insurance coverage is unavailable or plan members are ineligible for coverage, Alberta's provincial programs will continue to pay for eligible benefits. This change applies to plans of both active employees and retirees. A detailed example can be found here.

2. Coverage for plan members age 65 and older, who are actively working

Employers cannot terminate or reduce drug and health care coverage for active employees aged 65 and older. 

It is important to note that:

• Age-based restrictions may continue for retiree plans; 
• Bill 11 does not mandate minimum coverage requirements for private health plans. 

What This Means for You

As eligible costs shift from provincial to private coverage, your plan costs and claims experience may change, affecting your rates. The impact will depend on your plan design, member demographics, and where your members reside.

For detailed information on how health claims will be paid under the new legislation and examples of plan impacts, please see this link.

We're monitoring this legislation closely and will share updates as the Alberta government releases additional details.  In the meantime, for more information, please visit the government of Alberta website.

Communications Plan

Plan member communications will begin closer to the implementation date for Bill 11. Both you and your plan members will receive detailed updates at that time, If your plan is impacted, this will be reflected at the next renewal.

We're committed to keeping you informed of legislative changes that affect coverage.

Questions? We’re here to help.

Please contact your Sun Life Group Benefits representative.