Federal immigration records reveal that Canada has spent more than $275 million over the past nine years providing health coverage to asylum seekers whose refugee claims were denied a figure now drawing sharp criticism from Conservative MPs amid ongoing concerns about Canadians’ own access to medical care.
The figures came to light through an order paper inquiry filed by Conservative MP Burton Bailey, which compelled the immigration department to disclose its use of the Interim Federal Health Program, a taxpayer-funded initiative that covers health expenses for refugee claimants. The data spans fiscal years 2016-2017 through 2024-2025.
“Since 2016, the Liberal government has paid health expenses for over 130,000 rejected refugee claimants costing taxpayers over $275 million,” Bailey wrote on X on April 22, adding pointedly: “This, while Canadians cannot get access to basic healthcare services.”
The numbers tell a story of rapid growth. Annual costs tied to individuals whose Immigration and Refugee Board applications were rejected climbed from $10 million in 2016-2017 to more than $53 million in 2024-2025 a more than fivefold increase in under a decade. Importantly, the government’s figures include people still working through the appeals process, not only those who have exhausted all legal options.
The Interim Federal Health Program was established nearly seven decades ago as a temporary bridge a way to ensure refugees and protected persons had basic health insurance while they waited to qualify for provincial or territorial coverage, or until they departed the country. It was never intended as a permanent solution.
Today, the scope is considerably larger. In fiscal year 2024-2025 alone, the program served 623,365 beneficiaries, including 440,537 asylum claimants. Total expenditures reached $896.5 million a jump of $306.1 million from the previous year, driven largely by a surge in the volume of claims, according to Immigration Canada.
Facing mounting costs, the federal government is moving to rein in spending. Starting May 1, a new co-pay structure takes effect for recipients using supplemental health coverage under the program.
Under the new rules, refugees and asylum seekers will be responsible for 30 percent of costs for dental visits, optometry, and physiotherapy, plus a flat $4 fee on prescriptions. The list of services falling under this cost-sharing model is broad it includes psychology and counselling, occupational therapy, speech-language therapy, assistive devices such as prosthetics, mobility aids and hearing aids, home and long-term care, and medical supplies and equipment.
Core medical services, however, remain fully covered. Doctor and specialist consultations, hospital care, and diagnostic services will continue to be provided at no cost to beneficiaries under the program’s basic plan.
The co-pay announcement was first made in last fall’s federal budget as part of a broader effort by Immigration, Refugees and Citizenship Canada to cut departmental expenses by 15 percent over the next three years.
The disclosure arrives at a politically charged moment. With healthcare wait times a persistent frustration for many Canadians, the revelation that hundreds of millions of dollars have flowed to individuals whose refugee claims were rejected is unlikely to fade quietly from public debate particularly as the federal government simultaneously moves to scale back the very program at the centre of the controversy.
