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Tax and Revenue Administration
Crown's Right of Recovery Act
Special Notice Vol. 6 No.
22


Released: February 28, 2018
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.revenue@gov.ab.ca

Vol. 6 No. 22 / February 2018

SPECIAL NOTICE

2018 ASSESSMENT FACTOR - CROWN'S RIGHT OF RECOVERY ACT

NOTE: This special notice is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this special notice and governing legislation, the legislation takes precedence.

The Crown’s cost of health services provided to victims of automobile accidents is recovered from third party liability insurers. Insurers apply an “assessment factor” to third party liability insurance premiums written for the year to arrive at the amount to be remitted.

The 2018 assessment factor has now been established at 7.04% per cent. This factor must be used in the 2018 Health Costs Recovery Report - Automobile Accidents, to determine the amount insurers have to remit for the 2018 calendar year.

The 2018 assessment factor is based on the aggregate assessment set by Alberta Health, plus a second preceding year adjustment. The total amount is then divided by the estimated 2018 third party liability insurance premiums to arrive at the assessment factor. The 2018 premiums are estimated based on prior years’ actual amounts and set after consultation with industry.

Although the 2018 assessment factor reflects the aggregate assessment set by Alberta Health, net collections for 2016 were less than the aggregate assessment for that year. The 2018 assessment factor reflects this underpayment and increases the amount to be collected for 2018.

The assessment factor since inception of the program was:

1996 - 10.24%
2002 - 5.27%
2008 - 5.12%
2014 - 5.00%
1997 - 6.53%
2003 - 4.68%
2009 - 3.71%
2015 - 6.44%
1998 - 4.24%
2004 - 2.74%
2010 - 5.36%
2016 - 5.90%
1999 - 3.53%
2005 - 2.31%
2011 - 6.99%
2017 - 5.67%
2000 - 4.73%
2006 - 5.23%
2012 - 6.10%
2018 - 7.04%
2001 - 4.90%
2007 - 6.90%
2013 - 4.80%

 



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