Canada's Refugee Health Program Reaches $1 Billion Annual Cost Milestone
A new analysis from the Office of the Parliamentary Budget Officer has revealed that Canada's Interim Federal Health Program, which provides health coverage to refugee claimants, is projected to reach a record $1 billion in annual costs this year. This represents a dramatic five-fold increase from just six years ago when the program cost $211 million annually.
Program Expansion and Future Projections
The analysis, released last Thursday, indicates that program costs are expected to continue surging in the coming years, with projections showing the annual budget could reach $1.5 billion as early as 2029. Between now and 2030, Canadians are on track to spend approximately $6.2 billion on healthcare for refugees and refugee claimants through this program.
The Parliamentary Budget Officer's report identifies two primary drivers of this explosive growth: the rising volume of asylum claims and extended determination times that prolong eligibility periods. According to the report, "The rising volume of asylum claims, along with the longer duration of eligibility caused by extended determination times, has been an important growth driver in recent years."
Controversial Coverage Extensions
One of the most contentious aspects of the program is that it continues to provide benefits even to asylum claimants who have had their cases rejected. The Conservative party, which requested the analysis through the House of Commons standing committee on health, highlighted this issue in a Thursday statement.
Conservative shadow ministers Dan Mazier (health) and Michelle Rempel Garner (immigration) issued a joint statement noting: "Rejected asylum claimants are now receiving better health care than many Canadians who have paid into a system their entire life." They added, "At a time when six million Canadians cannot find a family doctor and are waiting for care, it's unacceptable that bogus asylum seekers are receiving better health benefits than Canadians."
Comprehensive Benefits Package
The Interim Federal Health Program offers a remarkably comprehensive benefits package that exceeds what many Canadian citizens receive through provincial health plans. In addition to standard hospital and surgical care, the program covers:
- Dental care
- Vision care
- Pharmacare
- Other services not typically covered by public health plans
This extensive coverage has raised questions about program equity and sustainability as costs continue to escalate.
Growing Asylum Claimant Population
The Immigration and Refugee Board's most recent count shows 299,614 foreign nationals in Canada awaiting refugee claim reviews. This population exceeds the entire population of major Canadian cities like Saskatoon, Saskatchewan or Windsor, Ontario.
This represents an astonishing increase of more than 1,800% from the 16,058 individuals in the country when the Trudeau Liberals first took power in 2015. The current figure includes tens of thousands who entered the United States on tourist visas before crossing into Canada illegally to make refugee claims, as well as a recent surge of foreign nationals who entered Canada on student visas but claimed refugee status upon visa expiration.
Broader Financial Implications
The ballooning costs of the Interim Federal Health Program represent just one aspect of increased federal spending related to asylum claimants. Another significant expense comes from the Interim Housing Assistance Program, which covers shelter costs and even food bills for asylum claimants.
In 2024, Conservative MP Lianne Rood published disclosures from Immigration, Refugees and Citizenship Canada revealing that some asylum claimants were receiving room and board benefits exceeding $200 per day. These findings have intensified debates about program costs and priorities as Canada faces broader healthcare system challenges.
The Parliamentary Budget Officer's analysis provides critical data for ongoing policy discussions about refugee healthcare benefits, program sustainability, and how Canada balances humanitarian obligations with fiscal responsibility and equitable access to healthcare for all residents.
