The Canadian federal government has implemented a new co-payment model for refugee claimants, ending full coverage for several medical services previously provided under the Interim Federal Health Program (IFHP). Effective May 1, the policy requires claimants to pay out-of-pocket for specific health services before they become eligible for provincial health insurance.
Under the new rules, refugee claimants must now pay $4 for prescriptions. They are responsible for 30 per cent of the cost for “supplemental” health services, which include basic vision care, emergency dental services, and mental health counselling.
The co-pay requirement also extends to essential medical devices, including prosthetic legs, wheelchairs, and hearing aids. However, basic emergency and essential services—such as ambulance services, lab tests, and vaccinations—remain fully covered.
Medical Warnings and Patient Risks
Dr. Allison Henderson, the medical lead at the Refugee Health Clinic in London, Ontario, warns that these costs could push vulnerable patients into crisis. The clinic, which is part of London InterCommunity Health Care, sees nearly 100 new refugees each month seeking treatment for complex health issues.
Henderson notes that many refugees arrive with little money and no permanent home, making even small co-payments a significant barrier. She highlighted the case of a patient with cerebral palsy who struggles with swallowing and can no longer afford outpatient therapy.
According to Henderson, such barriers to care increase the risk of pneumonia, aspiration, and choking, which may ultimately result in more frequent hospitalizations and further strain an already overwhelmed emergency system.
The Financial Justification
Immigration, Refugees and Citizenship Canada stated that the IFHP cost approximately $896 million in 2024-25, providing coverage to more than 623,000 people. The government suggests the new co-payments are intended to “equalize things” so that everyone contributes a small amount.
Financial projections from the government suggest the changes will generate roughly $127 million in savings for 2026-27, with savings reaching $232 million in subsequent years. This comes amid a growing backlog of individuals seeking asylum in Canada.
Dr. Henderson has challenged these projections, stating that officials have not provided data to support the analysis. She further noted that the government admitted there was no expert consultation involved in the decision-making process.
Potential Future Developments
Given the historical precedent of the 2014 court ruling, the current policy could face similar legal challenges regarding the Charter. If patients continue to delay essential care due to costs, the government may see a rise in emergency room admissions, which could potentially offset the projected savings.
Medical professionals and organizations may continue to work to mitigate the harm caused by these cuts, while advocating for a full reversal of the co-payment model to prevent patients from feeling abandoned by the healthcare system.
Frequently Asked Questions
What specific costs are refugee claimants now facing?
Claimants must pay $4 for prescriptions and 30 per cent of the cost for supplemental services, including mental health counselling, basic vision care, emergency dental, and medical devices like wheelchairs or hearing aids.
Which services are still fully covered by the IFHP?
Basic essential and emergency services, including lab tests, vaccinations, and ambulance services, remain fully covered.
How much does the government expect to save from these changes?
The government expects to save approximately $127 million in 2026-27 and $232 million in the years following.
Do you believe health care co-payments for asylum seekers are a fair way to manage national health budgets?