Alberta

Canada Spent $275M on Health Care for Rejected Asylum Seekers Over Past Decade

Federal data reveals surging costs for interim health program as immigration debate intensifies in Parliament.

Canada Spent $275M on Health Care for Rejected Asylum Seekers Over Past Decade
(Lethbridge Herald / File)

Ottawa's immigration spending on rejected asylum claimants has ballooned to more than $275 million over the past decade, according to newly released federal data that's reigniting debate over Canada's refugee and asylum systems.

The Immigration Department disclosed the figures in response to a parliamentary question from Alberta Conservative MP Burton Bailey, revealing that the Interim Federal Health Program — which covers medical expenses for asylum seekers — has grown dramatically year over year.

The program spent roughly $10 million in the 2016/17 fiscal year but surged to over $53 million by 2024/25, a five-fold increase that underscores the mounting financial burden on federal coffers.

Who's Using the Program?

Nearly 132,000 people with rejected asylum claims accessed the health coverage between 2016/17 and 2024/25, with approximately 19,000 individuals using the program annually over the most recent four-year period. The data encompasses everyone with a denied Immigration and Refugee Board decision, including those pursuing appeals.

The Interim Federal Health Program provides coverage for basic medical care — including hospital visits and prescription medications — plus supplementary services typically unavailable through public healthcare systems, such as dental work, vision care, and counselling.

Political Firestorm Over "Scammers"

Bailey used the data to launch a scathing critique during Thursday's question period, suggesting the government has lost control of immigration policy.

"The fact is non-citizens whose asylum claims have been rejected have no reason to be in this country and should not benefit from better health care than Canadians," Bailey stated. "When will the prime minister admit he's lost control of immigration and stop letting scammers treat Canadians as a walk-in clinic?"

Immigration Minister Lena Diab fired back, contextualizing the spending as a fraction of total Canadian health expenditures and noting that asylum claims have declined over the past two years.

"That program represents 0.2 per cent of the total health spending for Canada. I think they better get their facts straight and stop fearmongering off the backs of people that are vulnerable and that need to be protected," Diab responded.

Policy Shifts on the Horizon

The government is already tightening eligibility and cost-sharing measures. Effective May 1, the program is implementing a 30 per cent co-pay for supplemental coverage — including eye and dental care — and charging a $4 fee for prescription fills.

The Liberal government is also advancing Bill C-12, proposed legislation that would prevent individuals who arrived in Canada more than a year prior from filing refugee claims with the Immigration and Refugee Board, Canada's primary asylum adjudication body. Diab suggested this measure will further reduce asylum applications.

A System Under Strain

The escalating costs reflect broader challenges facing Canada's immigration and asylum infrastructure. As claims have accumulated and processing timelines lengthened, federal healthcare obligations have mounted, creating political tension between Ottawa's humanitarian commitments and fiscal accountability concerns.

The debate highlights a fundamental disagreement over immigration policy: whether Canada's asylum system is generous to the point of unsustainability, or whether spending on vulnerable populations represents a moral and legal obligation under international refugee conventions.

This article is based on reporting from the Lethbridge Herald. Read the original story.

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