The Interim Federal Health Program (IFHP) provides temporary health coverage to certain vulnerable groups in Canada who are not yet eligible for provincial or territorial health insurance. This includes refugees, asylum claimants (refugee claimants), protected persons, and other designated foreign nationals. The program covers urgent and essential medical care, as well as some supplemental benefits, until beneficiaries transition to public provincial plans or permanent residency status.
On January 27, 2026, Immigration, Refugees and Citizenship Canada (IRCC) officially announced significant updates to the IFHP, originally outlined in Budget 2025. These changes introduce co-payments for supplemental health products and services, effective May 1, 2026. The goal is to promote program sustainability amid rising costs and increased usage, while preserving full coverage for basic and essential medical care.
What Remains Fully Covered (No Changes)
- Basic health benefits continue to be provided free of charge, including:
- Doctor visits and general practitioner services
- Hospital care and emergency services
- Specialist consultations
- Diagnostic tests (e.g., X-rays, lab work)
- Urgent and essential medical care
These core services remain unaffected, ensuring that essential healthcare access is not compromised for IFHP beneficiaries.
What Is Changing: Introduction of Co-Payments
Starting May 1, 2026, beneficiaries will be responsible for paying a portion of the cost directly to their healthcare provider for supplemental health products and services. The new co-payment structure includes:
- $4 co-payment for each eligible prescription medication that is filled or refilled under the IFHP.
- 30% co-payment on the cost of all other eligible supplemental health products and services, such as:
- Dental care
- Vision care (e.g., eye exams, glasses)
- Counselling and mental health services
- Assistive devices (e.g., hearing aids, mobility aids)
- Physiotherapy and other allied health services (e.g., audiology, speech-language pathology)
These fees are paid at the point of service, and providers (such as pharmacies, dentists, optometrists, or therapists) will collect the co-payment directly from the beneficiary before billing the remaining portion to the IFHP administrator (Medavie Blue Cross).
Who Is Affected?
The changes apply to all eligible IFHP beneficiaries, including:
- Refugee claimants (asylum seekers)
- Resettled refugees
- Protected persons
- Certain other vulnerable foreign nationals
IRCC has indicated that co-payments may be waived for children under 14 and individuals identified as medically vulnerable in some cases. Additional measures, such as direct-billing arrangements or caps on out-of-pocket expenses, are being explored to ease the impact.
Why These Changes Were Introduced
The federal government cites the need to manage growing program costs and ensure long-term sustainability. The IFHP has seen increased demand in recent years due to higher numbers of asylum claims and protected persons. By introducing modest cost-sharing for non-essential (supplemental) benefits, IRCC aims to balance access with fiscal responsibility—while keeping core medical coverage intact.
Practical Implications for Newcomers
- Budget Planning: If you rely on prescriptions, dental work, glasses, or counselling, factor in the new out-of-pocket costs (e.g., $4 per prescription refill or 30% of a dental procedure).
- Provider Interactions: Healthcare providers will need to calculate and collect the co-payment using the IFHP benefit grid.
- No Retroactive Application: Services received before May 1, 2026, remain fully covered under the previous rules.
- Transition to Provincial Coverage: Once eligible for provincial/territorial health insurance (often after gaining permanent residency or meeting residency requirements), IFHP coverage ends, and public plans take over.
What This Means for Business and Entrepreneur Immigrants
While the IFHP primarily supports refugees and asylum seekers, some temporary residents (including certain work permit holders under entrepreneur pathways like the C11 permit or PNP-linked streams) may initially fall under similar interim coverage arrangements if they arrive without immediate provincial eligibility. However, most business immigrants transition quickly to private insurance or provincial plans after establishing residency. These IFHP changes do not directly impact core entrepreneur immigration processes but highlight Canada’s emphasis on sustainable public services amid immigration reforms.
For the latest official details, visit the IRCC website or the dedicated IFHP page. Worldbridge Immigration, as Regulated Canadian Immigration Consultants (RCICs), stays updated on all policy shifts including health coverage implications for clients pursuing work permits, PNPs, or permanent residency. If you’re planning your move to Canada and want to understand how these changes (or other 2026 updates) may affect your family or settlement, contact Worldbridge Immigration for a free consultation. We help ensure you’re prepared for a smooth transition, from visa approval to long-term success in Canada.
