Thousands of asylum seekers and illegal residents awaiting deportation in Canada receive more comprehensive health care than regular citizens, costing taxpayers $1 billion last year. A recent federal attempt to control costs through co-pay fees will have minimal impact, according to a Parliamentary Budget Officer report released Tuesday.
Interim Federal Health Program Details
The Interim Federal Health Program (IFHP) provides hospital care, free doctor visits, lab work, and ambulance trips to asylum seekers, including those whose claims have been rejected. Before May 1, it also covered free medicine, vision and dental care, counselling, physiotherapy, speech language therapy, home care, and medical supplies. Starting May 1, the government introduced a $4 fee for prescriptions and a 30% co-pay for supplemental services.
Cost Projections and Savings
The PBO estimated the program cost $1 billion in 2025-26. Without user fees, costs were projected to rise to $1.5 billion by 2029-30. With the new fees, savings are expected to be only $162 million this year, reaching $217 million by 2029 (or $220 million considering Bill C-12). This leaves the program costing approximately $1.3 billion by 2029.
The PBO report notes that while savings are material, they do not offset broader cost pressures from high volumes of new claimants, longer eligibility durations due to backlogs, rising per-beneficiary spending, and health-care costs.
Factors Driving Costs
Longer wait times for asylum claim assessments allow more time for comprehensive, taxpayer-funded health care. High numbers of asylum seekers increase wait times, and rejected claimants often pursue appeals and deportation threat assessments, further straining the system. Immigration authorities have also found ways to allow deportation candidates to stay longer.
Even if new asylum claims decrease, existing backlogs will continue to drive costs. Costs only end when asylum seekers are removed from Canada. Accepted claimants receive care under provincial programs, while rejected claimants remain eligible for the all-inclusive IFHP package.
