Alberta Premier Danielle Smith has put a potential price on one of her government’s immigration referendum proposals, floating a roughly $1,900 annual health-care premium for some temporary residents that could ultimately become an additional labour cost for businesses hiring foreign workers.
The figure is one of the first concrete numbers attached to an October 19 referendum question that asks Albertans whether people with non-permanent immigration status should pay a “reasonable fee or premium” to use the province’s health-care and education systems. The vote itself is non-binding and would not automatically create a new charge.
Smith raised the $1,900 figure Tuesday during a Calgary Chamber of Commerce event while discussing how employers could be affected.
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“I gave you the idea of what we’re looking at … $1,900 per person,” Smith said, according to CBC News.
The government has not settled on a rate. Reporting Wednesday indicated Alberta is examining premiums ranging from roughly $1,400 to $1,900 per person.
More significantly for employers, Smith suggested businesses could end up absorbing the charge when recruiting temporary workers. She argued that an additional cost could change the economics of hiring foreign workers into lower-skilled positions, which the government says it wants filled by local youth.
Calgary Chamber of Commerce president and CEO Deborah Yedlin warned that placing the cost on either workers or businesses would increase employer expenses, particularly for sectors operating on narrow margins and relying heavily on labour availability.
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There is currently no legislation establishing the premium, and several core questions remain unresolved.
The province has not said whether temporary residents already living in Alberta would have to pay or whether a future program would apply only to new arrivals. It also has not determined whether workers, employers, or some combination of the two would be responsible for payment.
Finance Minister Jason Nixon said consultations would be required before those details were settled and indicated implementation would likely come only after Alberta’s next provincial election in 2027, according to CBC.
That means the October vote functions as a mandate-seeking exercise rather than a direct authorization of a $1,900 premium.
Under the referendum order, Albertans will be asked whether people with non-permanent legal immigration status should pay a fee for access to health care and education while citizens and permanent residents continue qualifying under existing rules. Elections Alberta explicitly lists the immigration questions as non-binding.
Temporary foreign workers and some international students can currently qualify for the Alberta Health Care Insurance Plan. Eligibility depends on factors including residency, the length and type of immigration document, and, for workers, their work permit.
Federal rules already require employers in the Temporary Foreign Worker Program to pay for private emergency health insurance during periods when a worker is not yet covered by provincial insurance. Those costs cannot be recovered from the employee.
$1 billion annual cost
Smith has tied the proposal to the government’s argument that rapid growth in temporary immigration has increased provincial health and education spending.
Alberta’s referendum campaign website estimates provincial services for temporary residents cost taxpayers more than $1 billion per year, including more than $600 million annually to educate approximately 45,000 children of temporary residents.
Smith has separately cited roughly 246,000 temporary residents in the province. Statistics Canada data released Wednesday, however, estimates Alberta had 279,477 non-permanent residents as of July 1, down 0.6% from the previous quarter but above Smith’s figure. Alberta’s total population reached 5.10 million.
Alberta NDP Leader Naheed Nenshi has challenged the government’s financial argument, pointing out that temporary workers also pay taxes and arguing that the province’s calculation does not adequately account for their contributions.
Smith has cited the United Kingdom as a model. The immigration health surcharge currently costs £1,035 per year for most applicable visa categories and £776 annually for students, their dependants, people under 18, and Youth Mobility Scheme applicants. The charge is generally paid during the immigration application process.
For Alberta, however, the $1,900 number remains an opening proposal rather than a finalized premium. Even if voters support the referendum question on October 19, the government would still need to determine eligibility, payment responsibility, exemptions, and implementation through subsequent policy and legislation.
