Local groups representing low-income and senior Calgarians warn that the province’s increase in prescription co-payments will further disadvantage those already grappling with financial instability. 

On June 10, the Alberta government announced in a news release that the maximum co-payments for prescriptions outlined in two government-sponsored plans are set to carry a higher price tag to compensate for rising drug costs. 

The public plans —  Non-Group Coverage and Coverage for Seniors — are administered by Alberta Blue Cross and cover a little over 40 per cent of prescriptions in the province. 

Starting July 1, the targeted plans will see the maximum prescription co-payments — the after-insurance price of a drug paid by consumers to pharmacies — grow by $1 every month for 10 months until capping out at $35 on April 1, 2026. 

The Seniors program caters to residents aged 65 and above, and the Non-Group program covers individuals and families younger than 65 who earn a below-average income. 

By next summer, the maximum co-payment prices will increase by approximately 17 and 26 per cent, respectively.

Pricier prescriptions: One more hill to climb

When the interim executive director of Vibrant Communities Calgary, Alka Merlin, heard about the increase, she worried for those already struggling.

“While we understand that these changes may seem like a few dollars to folks,” said Merlin. 

“For many of the people in our community who are living on a fixed or a low income, it can have a significant negative impact on their life and their ability to afford basic needs.”

For decades, the non-profit has tackled poverty by recommending policy changes and raising awareness about the challenges keeping Calgarians in a state of economic hardship. 

Merlin noted that affordability anxiety is not isolated to Calgary, but rather a hurdle felt globally since the pandemic. Though it has gradually eased, she said rising healthcare costs already strain residents, and that higher co-payments will only worsen the burden. 

“We know that Albertans are continuing to make choices between medication and other essentials,” said Merlin. 

“The co-pay will force Calgarians on a low income to make even tougher choices at a time when food and shelter costs are already high.”

Out of the 75,000 Albertans listed as using the Non-Group plan, the province said that 18 per cent of them are consistently charged the maximum co-payment, compared to five per cent of those using Coverage for Seniors. 

Despite changes to the Non-Group plan being pricier on paper, the CEO of Unison for Generations 50+, Larry Mathieson, stressed that the revision will disproportionately impact seniors as the province’s population continues to age.

Seniors will bear the brunt, says Unison CEO

The not-for-profit organization runs the Kerby Centre in Calgary and the Veiner Centre in Medicine Hat. Here, they offer a variety of services crafted with the central goal of improving the quality of life experienced by seniors. 

From yoga to language classes, a portion of their patrons pay a small annual membership fee to gain access to additional leisure programs. The other half of the people they see in a given year, according to Mathieson, are low-income seniors. 

He said that Calgary is situated in a relatively well-off province and that this has made for a unique older adult population. According to the Canadian Income Survey, he’s right — in 2023, Albertans brought home the highest median after-tax income.

“Because Calgary is a very affluent city, we tend to assume that our seniors are also affluent,” he said. 

“We definitely see seniors who are on very restricted incomes.”

Mathieson said there is a common misconception that seniors find themselves on a tight budget after inadequately planning for retirement. In reality, he said that many planned carefully, but their pensions offer little wiggle room.

“Housing and inflation have really been a challenge to seniors,” said Mathieson. 

“Some of the seniors that we see that are on old age pensions or benefits, those haven’t increased to meet inflation.”

In the news release, the province celebrated that when the maximum co-payment changes reach full stature, Alberta seniors will still be charged significantly less than seniors obtaining the same drug in British Columbia, for example. 

But Mathieson said that any change is change enough, and that he expects the attendance of Unison’s affordable food and financial literacy programs to surge when the price shift hits the over 760,000 older Albertans using the plan. 

“You have seniors with multiple medications, which can be life-saving,” said Mathieson. 

“Who may have to decide, ‘do I pay my rent, or do I buy my medication?’”

He said that some senior patrons have described their financial situation as “where they’re getting 1,000 little paper cuts, and they got no Band-Aids,” and recommended that the provincial government look into healing the many factors causing insecurity before raising costs.

How the province is responding

Citing the growing price of prescription drugs, the provincial government said that the increase in maximum co-payments was needed.

In 2024, the programs amounted to roughly $1.3 billion in combined operating costs, and by 2027, the province estimated an additional $194 million. 

“This change will help keep those costs in check, maintain a fair and balanced cost-sharing approach, and allow the government to continue offering this important coverage,” the release quoted Adriana LaGrange, the Minister of Primary and Preventative Health Services.

Upon announcing the price change, the provincial government suggested that low-income seniors concerned about their ability to cover the costs should apply for supplements through the Special Needs Assistance for Seniors program. 

Additionally, the statement added that any Albertan, regardless of their economic standing, should ask their pharmacist about money-saving strategies, including filling their prescriptions in bulk. 

However, the province’s former Minister of Health and current member of the Alberta New Democratic Party, Sarah Hoffman, said in a statement on Jun. 11 that these are steps residents shouldn’t have to take. 

“Increasing the cost of medications doesn’t improve health care or make things more affordable,” she said. 

“It does the exact opposite.”