New IFHP co-payment rules take effect May 2026
On This Page You Will Find:
- Breaking changes to IFHP payment structure starting May 2026
- Exact co-payment amounts you'll pay for prescriptions and services
- Which essential services remain completely free
- Why the government is implementing these new costs
- How to prepare financially for upcoming changes
Summary:
Starting May 1, 2026, thousands of IFHP beneficiaries will face new out-of-pocket costs for the first time. While doctor visits and hospital care remain free, you'll pay $4 per prescription and 30% of costs for dental, vision, and mental health services. This represents the most significant change to Canada's Interim Federal Health Program since its inception, affecting refugees, asylum seekers, and other eligible individuals who rely on this safety net for healthcare coverage.
🔑 Key Takeaways:
- IFHP beneficiaries will pay $4 per prescription starting May 1, 2026
- Supplemental services like dental and vision care will require 30% co-payments
- Core medical services (doctor visits, hospital care) remain fully covered
- No co-payment arrangements exist with other insurance plans
- IFHP operates as payer of last resort for those without other coverage
Maria Santos clutched the pharmacy receipt, staring at the total in disbelief. As a government-assisted refugee who'd been in Canada for eight months, she'd grown accustomed to her medications being fully covered under the Interim Federal Health Program. But come May 2026, that $4 co-payment per prescription will become her new reality—along with thousands of other IFHP beneficiaries across the country.
If you're currently covered under IFHP, you're about to face the most significant program changes in years. Immigration, Refugees and Citizenship Canada has confirmed that modest out-of-pocket costs are coming, fundamentally altering how beneficiaries access supplemental health services.
What's Changing: The New IFHP Co-Payment Structure
The Interim Federal Health Program has historically operated with a simple principle: full coverage for eligible beneficiaries who lack other insurance options. That's changing dramatically in 2026.
Here's what you need to know: IFHP doesn't currently offer co-payment arrangements with other insurance plans, nor does it coordinate benefits with existing coverage. The program serves as a payer of last resort, stepping in only when you have no public health insurance or comprehensive private coverage.
This standalone approach means if you have any other insurance—even partial coverage—IFHP won't supplement those benefits. You're either fully covered by IFHP or you're not covered at all.
The $4 Prescription Reality
Starting May 1, 2026, every time you fill or refill a prescription, you'll pay $4 directly to your pharmacy. This applies to all IFHP-covered medications, from antibiotics for infections to ongoing treatments for chronic conditions.
What this means for your budget: If you're managing diabetes and need monthly insulin refills, that's $48 annually just for one medication. Families with multiple prescriptions could see monthly pharmacy costs of $20 to $40 or more.
The good news? This $4 fee is significantly lower than what most Canadians pay through provincial drug plans, where co-payments often range from $10 to $25 per prescription.
The 30% Supplemental Services Hit
Beyond prescriptions, you'll face a 30% co-payment for supplemental health benefits that many IFHP beneficiaries rely on heavily during their transition to life in Canada.
Services requiring 30% co-payments include:
- Dental services: Cleanings, fillings, and emergency dental care
- Vision care: Eye exams, glasses, and contact lenses
- Mental health counseling: Critical support for trauma and adjustment challenges
- Physiotherapy: Often needed for work-related injuries or chronic pain
- Assistive devices: Mobility aids, hearing devices, and medical equipment
Real-world impact: A $300 dental cleaning will cost you $90 out-of-pocket. Prescription glasses totaling $400 will require a $120 payment from you. For many newcomers already stretching limited budgets, these costs represent significant financial pressure.
Your Safety Net Remains: Core Services Stay Free
Despite these changes, the most essential healthcare services remain fully covered without any out-of-pocket costs. You won't pay anything for:
- Doctor visits and consultations
- Hospital admissions and emergency care
- Diagnostic tests and laboratory work
- Specialist referrals and treatments
- Maternity and childbirth care
Why this matters: If you're dealing with a serious health crisis or need emergency medical attention, you won't face any financial barriers. The co-payments only apply to supplemental services that, while important, aren't immediately life-threatening.
Why These Changes Are Happening Now
The federal government hasn't publicly detailed the reasoning behind these new co-payments, but the timing suggests several factors at play. Healthcare costs have risen significantly, and IFHP enrollment has increased as Canada welcomes more refugees and asylum seekers.
The broader context: Provincial health insurance programs typically include co-payments for prescription drugs and supplemental services. These IFHP changes bring the program more in line with coverage that Canadian citizens and permanent residents receive.
Planning for the Financial Impact
With several months until implementation, you have time to prepare for these new costs. Here's how to get ready:
Create a healthcare budget: Track your current prescription use and supplemental service needs. Multiply prescriptions by $4 monthly and estimate 30% of your typical dental, vision, or therapy costs.
Prioritize essential care: Schedule important dental work, eye exams, or physiotherapy sessions before May 2026 if possible. This could save you hundreds in co-payment costs.
Explore community resources: Many settlement agencies and community health centers offer sliding-scale fees or financial assistance programs that could help offset these new costs.
Understand your coverage limits: Remember that IFHP won't coordinate with other insurance. If you gain access to provincial coverage or employer benefits, you'll need to transition off IFHP entirely.
What Hasn't Changed: No Insurance Coordination
Despite these new co-payments, IFHP maintains its position as a standalone program. You cannot combine IFHP benefits with other insurance plans or create co-payment arrangements with private insurers.
This means: If you have partial coverage through work or another program, IFHP won't fill the gaps. You must choose between IFHP coverage and other insurance options—you cannot have both.
The exception: Once you become eligible for provincial health insurance, you'll typically transition off IFHP completely, gaining access to provincial drug plans and supplemental benefit programs that may offer different co-payment structures.
Looking Ahead: What These Changes Signal
These co-payment introductions represent a fundamental shift in how Canada approaches healthcare for newcomers. While the amounts remain modest compared to private insurance, they signal a move toward cost-sharing even for vulnerable populations.
For current beneficiaries: Start budgeting now for these additional healthcare costs. The changes are confirmed and will take effect as scheduled.
For future applicants: Understand that IFHP coverage will include out-of-pocket costs for many services you might need during your settlement period in Canada.
The May 2026 implementation gives you time to adjust, but the reality is clear: healthcare through IFHP will no longer be entirely free for supplemental services. Plan accordingly, prioritize your health needs, and remember that essential medical care remains fully covered when you need it most.
FAQ
Q: What exactly will IFHP beneficiaries pay under the new 2026 co-payment rules?
Starting May 1, 2026, IFHP beneficiaries will face two types of co-payments. You'll pay $4 for every prescription medication, whether it's a one-time antibiotic or monthly chronic disease medication. Additionally, supplemental health services will require 30% co-payments from your pocket. This includes dental cleanings, eye exams, glasses, mental health counseling, physiotherapy, and assistive devices. For example, if your dental cleaning costs $300, you'll pay $90 directly. However, core medical services like doctor visits, hospital care, emergency treatment, diagnostic tests, and maternity care remain completely free. These changes represent the first time IFHP beneficiaries will pay out-of-pocket costs since the program's inception.
Q: Can I combine IFHP coverage with other insurance plans to reduce these co-payment costs?
No, IFHP does not offer co-payment arrangements with other insurance plans and cannot be combined with existing coverage. The program operates as a "payer of last resort," meaning you're either fully covered by IFHP or not covered at all. If you have any other insurance—even partial coverage through an employer or private plan—IFHP won't supplement those benefits or coordinate to fill gaps. You must choose between IFHP and other insurance options; you cannot have both simultaneously. The only exception occurs when you become eligible for provincial health insurance, at which point you'll typically transition off IFHP completely and gain access to provincial drug plans and supplemental benefit programs that may have different co-payment structures than the new IFHP rules.
Q: How much will these new co-payments actually cost me per month?
Your monthly costs depend on your specific healthcare needs, but here are realistic examples. If you take one prescription medication monthly, expect $4 per month or $48 annually. Families managing multiple prescriptions could face $20-40 monthly in pharmacy co-payments alone. For supplemental services, a quarterly dental cleaning costing $300 means $90 from your pocket every three months ($30 monthly if budgeted). Annual eye exams and glasses totaling $500 would cost you $150 out-of-pocket. If you're accessing mental health counseling at $120 per session, you'd pay $36 each visit. A typical IFHP beneficiary using moderate prescription and supplemental services might budget $50-100 monthly for these new co-payments, though costs vary significantly based on individual health needs and service frequency.
Q: Why is the government implementing these co-payment changes now?
While the federal government hasn't provided detailed public reasoning, several factors likely drive these changes. Healthcare costs have risen significantly across Canada, and IFHP enrollment has increased as the country welcomes more refugees and asylum seekers, expanding program costs. These co-payments align IFHP more closely with provincial health insurance programs, which typically include co-payments for prescription drugs and supplemental services that regular Canadian citizens and permanent residents pay. The timing also reflects broader healthcare policy trends toward modest cost-sharing, even for vulnerable populations. However, the $4 prescription fee remains significantly lower than most provincial drug plans, where co-payments often range from $10-25 per prescription, suggesting the government is balancing cost recovery with accessibility for newcomers who rely on this safety net.
Q: What can I do to prepare financially for these changes before May 2026?
Start by tracking your current healthcare usage to create a realistic budget. Count monthly prescriptions and multiply by $4, then estimate 30% of your typical dental, vision, or therapy costs. Consider scheduling important but non-urgent care before May 2026—dental work, eye exams, or physiotherapy sessions—to avoid co-payment costs. Research community resources now; many settlement agencies and community health centers offer sliding-scale fees or financial assistance programs that could help offset these costs. Create a dedicated healthcare savings fund, even if small amounts monthly. Explore whether you might become eligible for provincial health coverage or employer benefits before 2026, though remember you'll need to choose between IFHP and other insurance. Finally, prioritize essential prescriptions and services in your budget planning, as core medical care remains free.
Q: Will these co-payments apply to children and families differently?
The new IFHP co-payment rules apply equally to all beneficiaries regardless of age, meaning children will be subject to the same $4 prescription fees and 30% supplemental service co-payments as adults. This can significantly impact families, as children often require multiple prescriptions for conditions like asthma, allergies, or infections, plus regular dental and vision care. A family with two children needing monthly medications could face $16 monthly just in prescription co-payments. Pediatric dental cleanings, eye exams for school-age children, and potential mental health support for trauma-affected young refugees will all incur the 30% co-payment. However, all essential pediatric care—including doctor visits, vaccinations, hospital care, and emergency treatment—remains completely free. Families should budget carefully and consider prioritizing children's non-urgent supplemental care before the May 2026 implementation date to minimize financial impact during the adjustment period.
Q: What happens if I can't afford the co-payments for necessary medications or services?
If you cannot afford the required co-payments, you'll face difficult choices about accessing care, as IFHP cannot waive these fees or create payment plans. However, several options may help. Contact local settlement agencies, community health centers, and immigrant-serving organizations, as many offer emergency financial assistance or sliding-scale fee programs. Some pharmacies provide generic medication options that cost the same $4 co-payment but represent better value. For supplemental services, community health centers sometimes offer reduced-cost dental and vision care. Food banks and emergency assistance programs in your area may provide one-time help for healthcare costs. Additionally, some provinces have emergency drug programs for life-threatening medications. While core medical services remain free, delaying necessary supplemental care due to cost concerns could worsen health conditions, potentially requiring more expensive emergency treatment later. Explore all community resources and communicate with healthcare providers about your financial constraints.
