A new Alberta law could soon drive up health insurance costs for businesses and spark a ripple effect across the country. >> I'd be really surprised if the other provinces and premiers weren't watching this really closely. >> Alberta is shifting primary health and drug coverage for workers 65 and older directly onto employers. Meaning if those employees fill a drug prescription, the company's insurance provider, not the province, is now the first in line to pay. The legislation, Bill 11, bans employers from cutting benefits for active staff based on age. So industry estimates say employer health and drug bills could jump 2 to 5% on average. >> Whether or not your employer decides to um pass on some of those costs to employees is really going to be up to the employer. >> All workers now face the possibility of higher co-pays and reduced or capped coverage and lower wage growth. >> The cost of health insurance comes out of the wages of employees. And basically, as insurance and health care costs go up, wages grow more slowly over time. >> Data shows 15% of seniors aged 65 and older are now in the workforce nationally. In Alberta, it's 17%. >> It'll just be another variable in the hiring process. >> Small business owners are watching the changes closely. To manage costs, some may hire fewer older workers or switch to benefit-free contracts. >> I'm more so worried that more of the cost of health care would be on the employer's side or just private side that we would have to pay for. >> I suspect there's also a lot of uncertainty. There are a lot of things in here that make me wonder if they don't really conform to the Canada Health Act. >> The new rule is set to take effect this fall. And with it, some experts say Alberta is paving the way for two tracks of health care. Adding, as soon as that first domino falls, other provinces may soon follow. Christine Birak, CBC News, Toronto.