Canada's Refugee Health Program Reaches $1 Billion Annual Expenditure
Canadian taxpayers are now spending a record $1 billion annually to cover healthcare premiums for refugee claimants through the Interim Federal Health Program, according to a new analysis from the Office of the Parliamentary Budget Officer. The program's costs have ballooned five-fold since 2020, when expenditures stood at $211 million per year.
Program Extends Benefits to Rejected Claimants
Perhaps most controversially, the program continues to provide comprehensive health coverage even to individuals whose refugee claims have been formally rejected by Canadian authorities. This revelation comes from a Conservative-led request at the House of Commons standing committee on health, which prompted the Parliamentary Budget Officer's investigation.
The Interim Federal Health Program offers benefits that exceed what many Canadian citizens receive through provincial healthcare plans. In addition to standard hospital and surgical care, the program covers dental care, vision care, pharmacare, and other services not typically included in public health coverage.
Rapid Cost Escalation and Future Projections
The Parliamentary Budget Officer projects that program costs will continue to surge dramatically in coming years, potentially reaching $1.5 billion annually by 2029. Between now and 2030, Canadians are expected to spend approximately $6.2 billion on healthcare for refugees and refugee claimants.
The analysis identifies two primary drivers of this explosive growth: the rising volume of asylum claims and extended determination times that prolong eligibility periods. As of the most recent Immigration and Refugee Board count, 299,614 foreign nationals are awaiting refugee claim reviews in Canada—a population larger than either Saskatoon or Windsor.
Political Response and Healthcare Equity Concerns
Conservative shadow ministers Dan Mazier (health) and Michelle Rempel Garner (immigration) issued a joint statement criticizing the program's equity implications. "Rejected asylum claimants are now receiving better health care than many Canadians who have paid into a system their entire life," they stated.
The statement further emphasized the timing concerns: "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."
Historical Context and Claimant Composition
The current backlog represents an astonishing 1,800 percent increase from the 16,058 individuals awaiting review when the Trudeau Liberals assumed power in 2015. The claimant population includes tens of thousands who entered the United States on tourist visas before crossing into Canada illegally to make refugee claims.
Additionally, there has been a recent spike in foreign nationals who entered Canada on student visas but claimed refugee status immediately upon visa expiration. This trend has contributed to what the Parliamentary Budget Officer describes as "uncontrolled surges in federal spending" across multiple benefit programs.
Related Assistance Programs Also Expanding
The healthcare program represents just one component of refugee claimant support. The Interim Housing Assistance Program, which covers shelter costs and food bills for asylum seekers, has also experienced significant growth. In 2024, disclosures from Immigration, Refugees and Citizenship Canada revealed that some claimants were receiving room and board benefits exceeding $200 per day.
The Parliamentary Budget Officer's report concludes that without policy changes, these costs will continue their dramatic upward trajectory, placing increasing strain on Canada's healthcare funding and raising fundamental questions about benefit equity between refugee claimants and Canadian citizens.
