Federal government restores full health coverage for refugees and asylum claimants

The federal government under Prime Minister Mark Carney has reversed recent cuts to health coverage for refugees and asylum claimants, restoring full benefits under the Interim Federal Health Program.

New rules introduced on May 1, 2026 required eligible refugees to pay a $4 co-payment for prescription medications. The changes also required them to cover 30 per cent of the cost of supplemental services, including dental care, vision care, physiotherapy and mental health services.

The policy drew criticism from frontline physicians, human rights organizations and community advocates, who argued the additional costs could discourage some of the most vulnerable people from seeking timely medical treatment. Following sustained opposition, the federal government has reversed the changes and reinstated full coverage.

The Conservative Party has questioned the rising cost of the program. According to publicly reported figures, federal spending on the Interim Federal Health Program increased from $210 million in 2020–21 to $896 million in 2024–25. The Parliamentary Budget Officer had estimated that maintaining the co-payment measures would have saved approximately $162 million in 2026–27.