Bloom Blog

Significant changes to how certain health and drug benefits are being funded are coming on October 1, 2026. The reason? Alberta's Bill 11.

This may feel like one more thing added to the already full plate of employers. But the reality is that Bill 11 will affect organizations differently, and it will take time before the impact becomes clear.

Understanding what's changing today can help employers make more informed decisions as additional details emerge.

What Is Bill 11?

Bill 11, formally known as the Health Statutes Amendment Act, 2025 (No. 2), changes how certain prescription drug and health claims are paid in Alberta.

Two of the most significant changes for employers are:

Employer plans become the primary payer

Today, provincial programs often cover eligible drug expenses before an employer-sponsored benefits plan contributes.

Beginning October 1, many employer-sponsored plans will generally become the first payer for eligible prescription drug and supplemental health claims, with provincial programs stepping in afterward when applicable.

Health and drug benefits can no longer end at age 65

Historically, some employers reduced or terminated health and drug coverage once an active employee reached age 65.

Under Bill 11, employers must continue providing these benefits for actively employed individuals regardless of age, helping ensure employees who choose to continue working later in their careers maintain access to important health and drug coverage.

Why This Matters

For some organizations, the impact may be relatively minor, but for others, the extent of the impact will depend on factors such as workforce demographics, plan design, claims experience, and the number of Alberta-based employees covered under the plan. The changes could influence future claims costs and renewal discussions.

At this stage, there are still details being finalized, and insurers continue to assess what the long-term impact may look like.

What employers can do at this point is focus on understanding their current plan, identifying where additional exposure may exist, and making sure their benefits program continues to support both their business and the people who rely on it.

While much of the discussion around Bill 11 is focused on cost, we think employers should also use this as an opportunity to make sure their benefits plan is still working for both their business and their people.

A Good Time to Revisit Your Benefits Strategy

Many organizations approach benefits through the lens of annual renewals.

Rates go up, adjustments get made, and the conversation often ends until the next renewal arrives.

Bill 11 is a good reminder that benefits planning should be more proactive than that.

Now is a good time to ask:

• Does our current plan still align with our workforce?
• Are we managing benefits costs effectively?
• Are we prepared for future legislative changes?
• Are we getting the most value from our investment while still taking good care of our team?

These questions existed before Bill 11. The legislation simply makes them harder to ignore.

What Employers Should Be Doing Now

With implementation approaching, employers should consider:

• Reviewing plan design and coverage structures
• Understanding potential cost impacts with their advisor
• Evaluating specialty drug management strategies
• Reviewing policies and employment agreements for compliance
• Exploring funding arrangements that improve cost predictability

Most importantly, employers should start the conversation early.

Waiting until renewal season may limit your options.

A Catalyst for Better Benefits Planning

Bill 11 will undoubtedly create changes for Alberta employers.

What we do know is that October 1 is approaching quickly, and employers who begin evaluating their plans now will have more flexibility when the changes take effect.

As more information becomes available, Bloom Benefits will continue working with clients to understand the impact, explore their options, and ensure their benefits program continues to support the people who depend on it.