New Fines Target Improper Health Care Charges
Alberta Regulation 289/2025 amends the Alberta Health Care Insurance Regulation to establish an administrative penalty framework aimed at improving the enforcement of the Alberta Health Care Insurance Act, particularly with respect to improper billing practices and non-compliance with insured service rules. Made pursuant to section 28.5 of the Act, the regulation introduces a new Part 3.1 that sets out clear procedures, penalty amounts, payment rules, collection mechanisms, and appeal rights. Its provisions are designed to deter extra-billing and other contraventions while providing procedural fairness and transparency.
The regulation specifies the mandatory contents of a notice of administrative penalty issued by the Minister. Such a notice must identify the person subject to the penalty, cite the specific statutory or regulatory provisions contravened, describe the nature of the non-compliance, state the penalty amount and how it was calculated, set out the deadline and method for payment, and inform the recipient of their right to appeal. Service of the notice must be effected either by personal service or by registered mail to the person’s last known address, ensuring formal and verifiable delivery.
A tiered penalty structure is established, calibrated to both the severity and frequency of contraventions. Where a person has charged, collected, or received amounts beyond insured benefits payable by the Minister, penalties escalate with repeated offences. A first contravention attracts a penalty of $5,000 or 10% of the improperly charged amount, whichever is greater. A second contravention increases this to $10,000 or 25%, and a third or subsequent contravention results in $25,000 or 50%, whichever is greater. Where no excess amounts were charged or collected, a flat penalty of $5,000 per contravention applies, subject to an overall maximum of $1,000,000. Separate and significantly higher fixed penalties apply where the offender is not a practitioner, reflecting a policy choice to impose stronger deterrence on non-practitioner entities.
The regulation grants the Minister discretion to set payment deadlines, provided they are no earlier than 30 days after service of the notice. Extensions may be granted either at the request of the person penalized or at the Minister’s initiative where appropriate. To encourage timely compliance, the regulation authorizes the imposition of simple interest at a rate not exceeding 8% annually, along with a late payment penalty of up to 10% of the unpaid amount. However, recipients are afforded the opportunity to request a waiver of interest or penalties within 30 days, and the Minister may waive some or all of these charges based on the circumstances.
The regulation also outlines a structured appeal process. Notices of appeal must be submitted within 15 calendar days of service and must follow a form prescribed by the Minister. Appeal panels may consist of one to three members and may conduct hearings in writing, orally, or through electronic means.
Alberta (289/2025) January 21, 2026
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