Alberta Premier Danielle Smith is floating a health care premium of up to $1,900 for some temporary residents as her government pushes immigration reforms ahead of next month’s referendum.
Smith said Tuesday that Alberta is considering charging some temporary residents between $1,400 and $1,900 per person — a cost she suggested employers could shoulder.
“This is a new conversation. I recognize that we have been generous for a long time, but it’s put too much strain on our system,” Smith told the Calgary Chamber of Commerce.
Smith argues Alberta’s roughly 246,000 temporary residents cost the province $1 billion annually in health care and education while generating $150 million in provincial revenue.
“They’re responsible for $1 billion worth of healthcare and education costs, and yet they only generate $150 million in revenue,” she said.
The proposed premium is part of a broader immigration package going before Albertans on October 19, including changes to eligibility for provincial programs and a one-year residency requirement for some social supports.
Smith suggested employers could pay the premium, arguing the added cost could encourage businesses to hire Alberta youth for lower-skilled jobs.
“Is $1,900 for a business to take on that fee, is that going to make or break your business?” Smith said. “If it is, you’re probably hiring into a low-skilled profession, and we want those low-skilled jobs to go to youth employment.”
But key details remain undecided, including whether the premium would apply to temporary residents already in Alberta or only newcomers.
“We have to talk about that as a cabinet,” Smith said. “I want to see if we even have a mandate to do it.”
Finance Minister Jason Nixon said the policy would require a referendum mandate and likely would not be fully implemented until after the October 2027 provincial election.
Smith’s $1-billion cost and $150-million revenue estimates have faced scrutiny, particularly over how the revenue figure was calculated.
The proposal is also drawing pushback from business and the opposition.
Calgary Chamber president Deborah Yedlin warned the premium could raise costs and make it harder to recruit workers.
“This is not necessarily going to make businesses more competitive in Alberta,” Yedlin said.
Alberta NDP Leader Naheed Nenshi argued temporary residents pay the same taxes as other provincial residents.
“If she says that every temporary worker who pays the same taxes as every other Albertan is sucking out money from the health care system, guess what? That means every Albertan is sucking money out of the health care system,” Nenshi said.
An August Research Co. poll found 60 per cent support for health and education fees for non-permanent residents and 65 per cent for greater provincial control over immigration.
Albertans vote Oct. 19.