Ottawa projects $140M in savings from new refugee health-care co-pay

The federal government says changes to refugee and asylum claimant health coverage introduced this month are expected to reduce public spending by about $140 million this fiscal year.

The changes, which took effect May 1 under the Interim Federal Health Program, require refugee claimants and asylum seekers to pay part of the cost for some supplementary and prescription health services. According to federal data tabled in response to an order paper question from NDP MP Heather McPherson, the largest projected savings – about $93 million – are tied to dental care coverage.

Under the revised policy, claimants must pay a $4 fee for prescriptions and cover 30 per cent of costs for services not generally included in provincial public health systems, including dental and vision care. Routine physician visits and emergency medical treatment remain fully covered.

The government introduced the co-pay structure as the cost of the Interim Federal Health Program continues to rise. A February report from the Parliamentary Budget Officer projected the program would cost approximately $1.1 billion in the 2026–27 fiscal year.

The policy change affects refugee claimants across Canada, including in provinces such as Alberta and British Columbia where settlement agencies and public health systems continue to manage increased demand for newcomer services.