Thousands of refugee claimants who have had their cases rejected and are facing deportation may remain eligible for publicly funded health benefits, including dental coverage and counselling, according to a new report by the Parliamentary Budget Officer.

The analysis of the Interim Federal Health Program, which provides health coverage for refugees and refugee claimants until they are eligible for provincial health plans and benefits, found that the annual cost of the program reached $822-million in 2024-25 and was fuelled in part by long waits to have cases heard.

The PBO report, published on Tuesday, found that nearly 74,000 “failed refugee claimants” may remain eligible for coverage. They may be able to obtain such benefits for years if they appeal their cases, including in Federal Court.

Dental care represented a large share of spending in 2024-25, the report found, followed by prescription medication. Urgent dental spending increased to $257-million from $30-million over five years. The cost of counselling services rose to $38.7-million in 2024-25, while home health visits cost more than $12-million.

The report found that 88 per cent of total IFHP spending was concentrated in Quebec and Ontario in 2024-25.

Conservative immigration critic Michelle Rempel Garner seized on the findings, saying the program has ballooned out of control while six million Canadians still don’t have access to a family doctor.

“The IHFP was initially established to provide urgent, short-term, temporary health care for truly vulnerable refugees,” she said in a statement. “Now, the PBO has laid bare that after years of Liberal mismanagement of our asylum system, what was once a temporary program has turned into a multi-year taxpayer-funded entitlement where tens of thousands of bogus asylum claimants are provided health benefits that Canadians are not eligible for.”

The government must explain why refugee claimants facing enforceable removal orders continue to receive such taxpayer-funded benefits, she added.

The report says the program’s increased price tag is due to the number of refugee claims, persistent backlogs in assessing them and rising overall health care costs.

In last year’s budget, the government took steps to reduce the bill for the program. Changes that came into effect this month mean refugee claimants must now pay $4 for every prescription and 30 per cent of fees for supplemental health products and services, including vision care and counselling.

Basic health care costs, including doctor visits, hospital care, diagnostic testing and immigration medical examinations, as well as predeparture medical services, remain fully covered under the IFHP.

The Parliamentary Budget Officer estimated that the new co-payment system will reduce federal costs by $217-million annually by 2029-30.

Many organizations representing refugees, medical personnel and social workers, including the Canadian Medical Association and the Canadian Psychiatric Association, have warned that refugees can’t afford the co-payments and that their physical and mental health will suffer as a result.

Immigration, Refugees and Citizenship Canada said it welcomed the report, which provides “important analysis on the factors contributing to increased program costs and demand.”

Spokesperson Matthew Krupovich added in a statement: “IRCC remains committed to ensuring vulnerable individuals have access to essential health care services while maintaining responsible stewardship of public funds and the long-term sustainability of the program.”

As of December 2025, more than 300,000 refugee claimants were waiting for adjudication at the independent Immigration and Refugee Board. About 65 per cent had been in the system for more than a year, the report said.

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

Changes to the refugee system, brought in by the government under a new immigration and border law in March, rendered many claimants ineligible to have their cases heard by the independent board, putting them on a fast track to deportation.

The Parliamentary Budget Officer report said the new law may lead to a significant drop in costs, but that even if the number of new refugee claimants stabilizes, “existing backlogs are expected to continue driving costs in the near term.” It noted that claimants are entitled to multiple levels of review, including by the Federal Court, which extends the time they may be eligible for health coverage.

Source: https://www.theglobeandmail.com/politics/article-pbo-report-failed-refugee-claimants-federal-health-benefits/