The Alberta Teachers’ Association

Gordon Thomas

What has happened to Alberta Health Care Premiums?

As of January 2009, the provincial government stopped requiring Albertans to pay for Alberta Health Care, a program with a monthly fee of $44 for singles and $88 for families.

The benefit package is a significant part of a teacher’s total compensation. Historically, teachers have negotiated salaries and benefits with the goal of requiring employers to contribute as much of the premium as possible. This philosophy has been successful, and the average employer contribution has increased from 84 per cent in 1995/96 to more than 97 per cent in 2011/12—all in the context of ever-increasing premium costs. In many cases, teachers have accepted slightly less salary in exchange for increased contributions to benefits. It is the Association’s opinion that because this is a significant part of a teacher’s compensation, school boards should meet with their teachers to determine how to redistribute these premium dollars.  

The process has already occurred in several jurisdictions where previously negotiated clauses applied any reduction in the Alberta Health Care Premium to teachers’ other benefit premiums or Health Spending Accounts.  

Economic Policy Committees have been encouraged to contact school boards to discuss this issue. All collective agreements expire on August 31, 2012. Unfortunately, this means open negotiations on this, or any other issue, cannot take place until the spring of 2012. Collective agreements can be opened and amended mid-term, provided both parties agree. If the employer does not agree, there is probably no recourse.

Teachers will see some small benefit on their take home pay where the employer pays some or all the premium. Alberta Health Care is a taxable benefit. Where the employer paid 100 per cent of the premium, a teacher will now see between $200–400 per year savings in tax.