Ottawa to implement co-payments for refugee health benefits starting May 1

January 30, 2026

RED FM News Desk

The federal government has announced a significant shift in how health care is funded for newcomers, introducing a co-payment requirement for refugees and asylum seekers. Starting May 1, 2026, beneficiaries under the Interim Federal Health Program (IFHP) will be responsible for a portion of their supplemental health costs, marking a move toward program sustainability.

Under the new rules, Immigration, Refugees and Citizenship Canada (IRCC) will require patients to pay $4 for every eligible prescription medication filled or refilled. Additionally, the government is introducing a 30% co-payment for other supplemental services, including dental and vision care, mental health counselling, and the purchase of assistive devices.

Despite these changes, the IRCC emphasized that core medical services remain protected. Basic health benefits, such as visits to the doctor and hospital care, will continue to be fully covered by the federal government with no out-of-pocket costs for the patient. The IFHP serves as a vital safety net for protected persons and asylum claimants who have not yet qualified for provincial or territorial health insurance.

The decision to implement co-payments follows a massive surge in both the cost and the volume of the program. Data for the 2024-25 fiscal year shows that spending reached nearly $900 million, providing coverage for approximately 625,000 beneficiaries. This represents a staggering increase from a decade ago, when the program served fewer than 100,000 people. Federal officials stated that these “point-of-service” costs are intended to help share the financial responsibility as the system faces unprecedented pressure from rising asylum volumes.

Patients are expected to pay these new fees directly to their health-care providers at the time of service. The government is encouraging beneficiaries to use official search tools to find registered providers and to keep all receipts for their records. This policy change was first outlined in the 2025 federal budget and marks the most significant adjustment to the program since the restoration of full coverage in 2016.