Report

Projecting the Cost of the Interim Federal Health Program

Feb 12, 2026

In response to a request by the Standing Committee on Health, this report projects the fiscal cost of the Interim Federal Health Program and details some of the key cost drivers.

Highlights

The Interim Federal Health Program (IFHP) provides limited and temporary healthcare coverage to some groups of foreign nationals who are not eligible for health insurance from provinces or territories.
PBO estimates that total IFHP costs will reach almost $1.0 billion in 2025‑26 and rise to over $1.5 billion by 2029‑30. PBO projects that annual growth in IFHP costs will average well below the average growth observed over the past five years, reflecting both a moderated increase in the number of beneficiaries and a more gradual rise in average annual costs.
Budget 2025 indicated that a “modest co-payment model” will be introduced to the Interim Federal Health Program for supplemental health products or services. This change to the program is not reflected in our projection. Including this new measure would reduce our estimate of the total cost for the IFHP program.