The federal government is sharply increasing spending on health-care coverage for refugees and asylum seekers as demand surges, pushing annual costs under the Interim Federal Health Program (IFHP) close to $800 million.
Government report shows the IFHP provided coverage to 518,136 beneficiaries in 2023-24, including 346,028 asylum claimants, with expenses totalling $590.4 million.
Through Budget 2024, Ottawa committed $411.2 million for 2024-25 and added $145.6 million in base funding. A further $232.9 million was approved in the federal Supplementary Estimates (B) to meet growing demand, bringing total allocations this fiscal year to $789.7 million — an increase of $171 million from 2023-24.
The IFHP covers basic medical care, hospital services, prescription drugs and supplemental health supports, including mental-health counselling, disability supports, dental and vision care. The program applies to refugee claimants and other foreign nationals ineligible for provincial or territorial health coverage.
According to federal briefing materials, the cost of the program has risen steadily as asylum numbers grow and refugee cases take longer to process. The number of beneficiaries has jumped from 90,328 in 2015-16 to more than 522,000 in 2023-24, with asylum seekers representing roughly two-thirds of clients.
Officials say elevated asylum claim volumes and longer processing times mean the system must fund care not only for new arrivals but for those still awaiting decisions or removal.
Canada’s emergency departments are stretched to the brink, with many hospitals suffering from overcrowding, staff shortages and wait times exceeding 20 hours in some cases, says the Canadian Medical Association.
The federal government maintains the funding is necessary to ensure vulnerable newcomers can access urgent and essential medical services while in Canada.