Reviewing the Administrative and Fiscal Impacts of the Interim Federal Health Program

May 26, 2026

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At the request of the House of Commons Standing Committee on Health, this report provides an expanded analysis of the federal Interim Federal Health Program (IFHP), addressing elements outlined in the Committee’s motion adopted February 24, 2026. This report builds on prior work by the Parliamentary Budget Office and reflects updated analysis regarding program design, claimant volumes and administrative factors, factoring in the Budget 2025 changes which introduce co-payments for supplemental health products and services.

Highlights

Total program costs of the Interim Federal Health Program (IFHP) continue to increase over the projection period due to elevated intake levels, persistent backlogs and rising health-care costs. As of December 2025, more than 300,000 asylum claimants remain in the inventory of cases pending adjudication, five times the 2021 level, with approximately 65 per cent of these claims in the system for over a year since referred to the Immigration Refugee Board of Canada.

Supplemental benefits account for the majority of IFHP spending making up roughly 54 per cent of total program spending in 2024-25. Urgent dental care represented the largest share of spending, followed by prescription medication, with urgent dental expenditures increasing from $30 million to $257 million, over five years.

Cost and utilization of the IFHP are geographically concentrated, reflecting differences in refugee settlement patterns. Ontario and Quebec accounted for 88 per cent of the total IFHP spending in 2024-25.

PBO estimates that the introduction of the co-payment framework will reduce federal IFHP costs by $217 million annually by 2029-30.

PBO estimates that a one-month increase in processing times for asylum claimants could increase annual federal program costs by up to $72 million in 2026-27, given the current volume of claims in the system.

Policy changes, such as Bill C-12, which affects elements of the asylum and refugee eligibility process, may influence participation in the IFHP. Under an illustrative scenario in which 26 per cent of new asylum claimants are assumed ineligible for coverage, PBO estimates that federal costs could decline by $220 million annually by 2029-30.