Working past 65 in Alberta? Your health benefits could soon cost your employer more

The recent changes to Alberta’s Health Statutes Amendment Act have sent shockwaves through the business community and healthcare sector. Proponents of the bill argue that it will ensure workers over 65 maintain access to existing workplace health benefits, while critics warn that shifting funding responsibility from government to employers could have far-reaching consequences for both employees and businesses.

One primary concern is the potential increase in costs for employers. With the new legislation, employers can no longer terminate benefits for employees solely on the basis of age, forcing them to cover healthcare and benefit costs for those over 65 themselves. This could lead to a significant burden on small businesses and startups, which may struggle to absorb the added expense.

Economics professor Erin Strumpf at McGill University suggests that as plans are responsible for paying for more healthcare, premium costs could increase over time, leading employers to trim back on the generosity of their insurance coverage. This could create a disincentive for employers to hire older workers, exacerbating an already aging workforce.

The data from Statistics Canada is telling: between 2021 and 2025, the labour participation rate of people aged 65 and over increased from 14.2 per cent to 15.2 per cent in Alberta. With the province’s population aging rapidly, policymakers must consider the long-term implications of their decisions.

The change also raises questions about the sustainability of public insurance providers and other provinces, which may feel pressure to explore ways to trim costs. As Strumpf notes, this could lead to a domino effect across Canada, with provinces scrambling to find new financing models to mitigate the burden on themselves.

Some healthcare professionals have expressed concern that Alberta’s experiment in expanding private healthcare will set a dangerous precedent for other provinces. Dr. Danyaal Raza, a family doctor and University of Toronto professor, has been outspoken about the bill’s potential to provide a bad example for other jurisdictions. His concerns are not unfounded: as the insurance company Hub International notes, the changes could lead to increased drug and health claims for active employees.

The Alberta government’s push to allow physicians to work in both public and private healthcare systems has already sparked controversy. The introduction of this dual practice model, coupled with the shift in funding responsibility for workers over 65, raises questions about the future of Canada’s healthcare system.

Critics warn that the long-term consequences could be devastating, as employers struggle to absorb the added expense of covering health-care costs for older workers. Policymakers must prioritize a sustainable and equitable solution that balances the needs of both employees and businesses. Anything less could have far-reaching consequences for the province’s healthcare system and its workforce.

The Alberta government will need to carefully consider the potential implications of this shift in funding responsibility, particularly as other provinces may follow suit. By prioritizing a sustainable and equitable solution, policymakers can mitigate the risks associated with this change and ensure that workers over 65 continue to have access to essential health benefits.