Canada’s Refugee Health-Care Bill Reaches $1 Billion Annually

 

                Canadians now spending $1 billion per year to cover health-care costs of refugee claimants

Canada is now spending an unprecedented $1 billion per year to provide health‑care coverage for refugee claimants, according to a recent analysis by the Parliamentary Budget Officer. The rising cost is tied to the Interim Federal Health Program (IFHP), which offers temporary medical coverage to asylum seekers, refugees, and others not yet eligible for provincial health plans. 

The surge in expenses reflects a combination of factors: a record number of asylum claims, longer eligibility periods due to processing backlogs, and higher per‑beneficiary costs. Some claimants continue receiving coverage even after their applications have been rejected, adding to the financial strain. 

Spending under the IFHP has grown dramatically in recent years—from $211 million in 2020–21 to nearly $900 million in 2024–25—and is projected to keep climbing. Current estimates suggest the program could exceed $1.5 billion annually within the next five years if trends continue. 

The escalating costs have sparked debate over the sustainability of the program and the broader impact of Canada’s growing asylum system. While advocates argue the coverage is essential for humanitarian and public‑health reasons, critics warn that the financial burden on taxpayers is becoming increasingly difficult to justify.