Canadian taxpayers have spent more than $275 million over the past decade providing health coverage to asylum seekers whose refugee claims were ultimately rejected, according to newly released federal figures.
The spending, disclosed by Immigration, Refugees and Citizenship Canada in response to a parliamentary order paper question, covers the period from 2016-17 through 2024-25. It applies to claimants whose cases were denied by the Immigration and Refugee Board, but who continued receiving federally funded health benefits under the Interim Federal Health Program (IFHP).
The IFHP was created to provide temporary, limited health coverage to refugee claimants and other eligible non-citizens who are not yet covered by provincial or territorial health plans. It pays for essential medical care, including doctor visits, hospital services, and certain prescription medications.
What has drawn scrutiny is that eligibility for IFHP coverage can continue even after a refugee claim has been rejected. Under current rules, rejected claimants may remain covered while awaiting removal or while pursuing further legal avenues, such as a pre-removal risk assessment. In many cases, coverage only ends once the individual leaves Canada or becomes eligible for another public health plan.
The issue has become increasingly contentious as the overall cost of the program continues to rise alongside record levels of asylum claims and growing backlogs in the immigration system. Delays in processing mean many claimants remain in Canada—and on federally funded benefits—for extended periods, even after an initial rejection.
Critics argue that the arrangement places an added burden on taxpayers at a time when millions of Canadians struggle to access primary care. Supporters, however, contend that basic health coverage is necessary to protect public health and ensure humane treatment while legal processes are completed.
The federal government has already moved to curb rising costs. Beginning May 1, 2026, most IFHP beneficiaries will be required to contribute toward supplemental benefits, including prescription drugs, dental care, vision services, and counselling. Basic medical care, however, will remain fully covered.
The $275 million figure is likely to intensify debate over the balance between humanitarian obligations, fiscal responsibility, and the integrity of Canada’s immigration system. As asylum claims continue to climb, questions about the long-term sustainability of the program are unlikely to fade.
