The Alberta government has changed its guidelines for seniors drug coverage following a public outcry after the plan was first announced in December.

"There was considerable concern raised, and I think very viable concern, that seniors, especially those in middle income categories, under the plan we announced in December could cause some real financial hardships so I believe we've addressed that," Health Minister Ron Liepert said Thursday.

Under the new framework, single seniors with a taxable income of $12,000 and senior families with a combined taxable income of $24,000 or less will get their prescription drugs at no cost. From there, the government will calculate what premiums seniors will pay based on their taxable income.

The changes will take effect on July 1.

Under the previous guidelines, announced in December, single seniors with an income less than $21,325 and senior families with incomes of $42,650 would get their drugs for free, but the costs would have been higher for people earning above that level, with the highest earners paying $7,500 a year for coverage.

Liepert said his new plan will act like an insurance program where people pay premiums and minimal co-payments for each drug and seniors don't have to sign up if they don't want to.

But seniors advocate Noel Somerville of the public policy advocacy group Public Interest Alberta said this choice could put people in a difficult position.

"For some, it may be a good deal. For others, it's going to be very, very expensive insurance, and I think it's going to take people a while to sort out what the implications of this are," he said.

All middle-income seniors should be treated equally instead of having their payments determined according to their income, Somerville said.

The government's new rates are:

Single senior
Taxable income Premium Co-payment
$0 - $12,000 $0 $0
$12,001 - $24,000 $0 20% of each prescription's cost up to $15
$24,001 - $36,000 $31.75 per month 20% of each prescription's cost up to $15
$36,001 - $48,000 $47.62 per month 20% of each prescription's cost up to $15
$48,001 or more $63.50 per month 20% of each prescription's cost up to $15
Senior Family
Taxable income Premium Co-payment
$0 - $24,000 $0 $0
$24,001 - $48,000 $0 20% of each prescription's cost up to $15
$48,001 - $72,000 $59.00 per month 20% of each prescription's cost up to $15
$72,001 - $96,000 $88.50 per month 20% of each prescription's cost up to $15
$96,001 or more $118.50 per month 20% of each prescription's cost up to $15

Under the new changes, almost 60 per cent of seniors will get free prescription drugs or pay less than they do under the current plan, the government estimated.

The new plan will save the province an estimated $20 million compared to $30 million in the first plan.

With files from The Canadian Press