Federal Government Assumes Control of Troubled Vaccine Injury Compensation Program
The federal government has taken over direct administration of Canada's controversial no-fault vaccine injury compensation program, which was originally launched alongside the COVID-19 vaccine rollout. This significant transition follows years of mounting complaints, substantial backlogs, and revelations about disproportionate administrative spending under private management.
Program Plagued by Complaints and Delays
Officials from the Public Health Agency of Canada revealed during a recent technical briefing that the Vaccine Injury Support Program (VISP) has generated increasing volumes of "negative correspondence" from claimants, their families, and members of Parliament throughout its five-year operation. The program was designed to provide compensation for individuals who experienced rare but serious injuries following administration of any Health Canada approved vaccine, including COVID-19 vaccines.
Originally announced by then Prime Minister Justin Trudeau in December 2020, program management was initially delegated to private consulting firm Oxaro Inc. However, this arrangement proved problematic, with many applicants reporting frustrating experiences including extended delays and opaque decision-making processes.
Revelations About Administrative Spending
A Global News investigation uncovered concerning financial details about the program's operation under private management. According to their reporting, of the $50.6 million in taxpayer funding allocated to the program, approximately $33.7 million was spent on administrative costs, while only $16.9 million reached injured claimants directly. Neither government officials nor Oxaro had accurately anticipated the volume of injury claims the program would receive, according to the investigation.
Many applicants described being given "the runaround" or having their claims rejected by medical professionals they had never consulted or met personally. These revelations prompted Federal Health Minister Marjorie Michel to order a comprehensive audit of the program.
Substantial Backlogs and Review Process
The transition to government control comes as approximately 225 claims previously denied by Oxaro under stricter eligibility criteria are now undergoing review. Government officials acknowledged that many claimants faced waits of 12 to 24 months before even receiving medical assessments, with some individuals waiting years for final decisions on their applications.
As of December 1, 2025, the program had received 3,557 claims since its inception in June 2021. Under program guidelines, claims must be filed within three years following vaccination, date of death, or when an injury first became apparent.
Government Assumes Direct Responsibility
Federal Health Minister Marjorie Michel explicitly stated her dissatisfaction with Oxaro's management during a House of Commons health committee meeting in October. "Now, I won't tell you that we were satisfied with what Oxaro was doing," Michel declared. "That's why we decided to hand the program back to the government."
The agreement with Oxaro officially concluded on March 31, with the federal government now assuming full operational control. Michel emphasized that compensation decisions would be evaluated on a case-by-case basis, with potential awards reaching as high as $493,000 for eligible claimants.
Vaccine Safety Context and Statistics
Minister Michel acknowledged the unfortunate reality of vaccine injuries while contextualizing them within broader public health benefits. "Vaccines saved lives during the pandemic," she stated. "Thanks to modelling, we were able to see if it weren't for the vaccines there would have been many more deaths and many more cases."
She added, "It's always unfortunate when people experience negative effects from vaccines, but that can also happen with many other types of treatment. It's really unfortunate."
Since December 2020, Canada has administered more than 105 million COVID-19 vaccine doses alongside countless other vaccines including routine childhood immunizations. Health Canada data updated as of January 5, 2024, indicates 58,712 reports of adverse events following COVID-19 vaccination, representing approximately 0.056 percent of all administered doses.
The federal takeover represents a significant restructuring of Canada's approach to vaccine injury compensation, with government officials now directly responsible for addressing the substantial backlog of claims and improving the program's responsiveness to affected individuals.
