Canada cuts IFHP in new budget: Report

The Canadian Federal government announced that IFHP beneficiaries will have to start paying copay for prescription medications and a third of all other healthcare costs. The change has many citizens who benefit from the IFHP concerned about the change in their monthly costs. The changes include a $4 copay for medications and 30% of the cost of all other eligible supplemental health products and services, including dental care, vision care, counselling, and assistive devices.

The Interim Federal Health Program (IFHP) is a program that benefits resettled refugees, refugee claimants, protected persons, and victims of human trafficking or family violence in Canada who are not yet eligible for provincial/territorial health insurance. The IFHP was created by the Canadian government in 1957 and has helped tens of thousands of refugees in its history. In 2012, a Conservative Canadian government slashed the program until the Liberal Party was elected into power in 2016 and reinstated the program’s funding.

The cuts from 2012 resulted in refugees and vulnerable citizens being left without healthcare, access to prescriptions, and difficulty getting access to healthcare services. This is the first time that the IFHP has been changed since its funding was reinstated in 2016. While the cuts announced are nowhere near as drastic or harmful as those from 2012, the change marks a concerning turn away from the IFHP’s values and leads Canadians to wonder whether more changes are to come. More than 600,000 individuals rely on the Interim Federal Health Program.

The two changes implemented are designed to use the strain of the IFHP on the Federal budget. The IFHP costs the Canadian government nearly $1 CAD every year, and the cost has been steadily rising. Approximately half of the budget is spent on supplemental health products and services, which is also the area that will experience the most change from the new directive. With IFHP beneficiaries now paying 30% of the cost of their supplemental health products and services, the Federal government will see an income boost of at least $100m CAD. The new copay rate will not secure a large financial payout for the Federal government.

Over two-thirds of Canadians require a daily prescription. With more than 600,000 vulnerable citizens benefiting from IFHP, there should be more than 300,000 people now required to pay a $4 copay for their medications. Dental coverage is also included as a ‘supplemental health product and service,’ meaning refugees will no longer have complete dental coverage. Basic dental checkups can cost up to $300, and expensive surgeries can cost thousands of dollars. One of the most common dental surgeries, a wisdom tooth removal, can cost up to $2,000 CAD, and with an estimated 85% of people needing wisdom tooth surgery, the changes to the IFHP will financially affect thousands of refugees and vulnerable citizens.

Refugees and victims of human trafficking/family violence are some of the most financially vulnerable citizens in Canada. The average yearly income for a new refugee is just $24,000 CAD, and after ten years in the country, the average income only goes up to $30,000 CAD. Survivors of domestic violence and human trafficking average even less yearly, often relying on financial assistance programs while they experience a serious life change. Victims of domestic violence and human trafficking also often experience higher medical bills. Victims of violence often require therapy and other ancillary health services, along with prescriptions.

It’s not clear why the Federal chose the IFHP as the program to be defunded. Prime Minister Mark Carney has not commented on the changes to the program, but human rights groups in Canada have begun lobbying in favour of the IFHP.