Newcomers to Canada may not have to forgo health care coverage thanks to the federal government’s new Interim Federal Health Program (IFHP).
Canada is a popular place for people all over the world to relocate to. Over 1.3 million new immigrants permanently settled in Canada between 2016 to 2021. And in 2022 alone, the country welcomed over 431,000 new permanent residents.
There’s a lot to consider when relocating to Canada, and health insurance is one of them. While Canadians and permanent residents enjoy free provincial and territorial health care, newcomers need to take steps to ensure they’re covered.
But not all newcomers to Canada are immigrants who have access to provincial health care. Many arrive in Canada as refugee claimants and victims of human trafficking.
To tackle this issue, the Canadian government has implemented a new program called the Interim Federal Health Program (IFHP). It is designed to help all types of newcomers get medical coverage. This program can also help newcomers tackle debt taken to cover the cost of health care visits out-of-pocket.
Let’s dig deeper into this new program to see what it covers and how it can be accessed.
What Is The Interim Federal Health Program?
The Interim Federal Health Program (IFHP) covers the cost of medical services for a short period of time following arrival to Canada. It’s designed for those who are not yet eligible for provincial or territorial health insurance, including the following:
- Resettled refugees
- Refugee claimants
- Protected persons
- Human trafficking victims
- People who have been detained at the Canadian border
The program is meant to bridge the gap between arrival to Canada and eligibility for health insurance coverage. Without healthcare coverage, newcomers to Canada may have to take on debt to cover the cost of medical care, which is extremely expensive to pay for out-of-pocket. The IFHP can help alleviate the strains of added debt by providing coverage for healthcare needs.
The type of coverage you can get under the IFHP and the length of coverage depends on your status in Canada. Immigration, Refugees and Citizenship Canada (IRCC) or the Canada Border Services Agency (CBSA) will determine whether or not you’re eligible for the IFHP.
What Does The Interim Federal Health Program Cover?
The IFHP covers many of the same services that are covered under provincial or territorial health insurance plans:
Basic Services
- Doctor visits
- Hospital visits
- Ambulatory services
- Laboratory and diagnostic testing
Prescriptions
- Medications
- Medical devices
Supplemental Services
- Limited vision care
- Urgent dentist visits
- Home care
- Long-term care
- Supplemental medical services (ie. care from psychologists, therapists, physiotherapists, occupational therapists, speech-language therapists, etc)
Immigration Medical Exam (IME)
- Beneficiaries are covered for one immigration medical exam and necessary diagnostic testing.
Can You Get A Loan If The Interim Federal Health Program Doesn’t Cover All Your Medical Expenses?
Your ability to get a loan in Canada has more to do with your status in Canada rather than your eligibility to have your medical care covered by the Interim Federal Health Program. In order to secure a loan in Canada, you’ll need to be a Canadian citizen or permanent resident. If you’re a refugee, you’ll need to first become a permanent resident before you can apply for a loan. Lenders do not typically provide loans to non-residents.
If you resettled as a refugee in Canada, you’ll be given a Confirmation of Permanent Residence document, and ultimately a Permanent Resident card, which would make it possible for you to take out a loan in Canada.
What To Consider When Getting A Loan
You’ll be committed to your loan for a few years, so you want to make sure you’re entirely comfortable with the loan and are capable of making monthly payments to repay it before you sign a loan contract. Here are some of the more important factors to consider when applying for a loan:
Your Credit Score
One of the main factors that lenders consider when providing a loan is your credit score.
Creditworthiness will give the lender an idea of how likely you will be to make timely payments and repay the loan in full by the due date. The higher the credit score, the better.
One of the biggest hurdles for newcomers to Canada is that they have zero credit. If you are new to Canada, you’ll need to re-establish your credit profile once you arrive in Canada. But without credit, it will be extremely difficult to get approved for a loan.
Even landlords and insurance providers will want to assess your credit score before allowing you to sign a lease or take out an insurance policy. Essentially, your credit score impacts several aspects of life in Canada, which is why it’s crucial to start building credit as soon as you can.
Even after you’ve started to establish a credit profile, you’ll want to work towards increasing your score as high as possible. A good credit score will not only help you qualify for a loan, but it will also afford you lower interest rates and better terms, making your loan more affordable and easier to manage.
You can check your credit score for free by using Loans Canada’s CompareHub.
How To Build Credit
Fortunately, there are ways to build good credit from the ground up, even if you’re starting from scratch.
Apply for a secured credit card
One of the simplest ways to build credit is to apply for a secured credit card, which requires you to make an upfront down payment instead of spending on credit. This deposit serves as collateral, so you’re actually spending money you already have. This collateral protects the creditor in case you fail to make payments on the card at some point.
Every payment you make on the card is reported to the credit bureaus, which helps to build a healthy credit history.
Get a cell phone
Taking out a new cell phone contract is another simple way to build credit. Just make sure to take out a post-paid plan so that your timely payments are reported to the credit bureaus. Pre-paid payment plans don’t count toward building your credit profile.
Use a credit-building service
For a few dollars a month, you can subscribe to a credit-building service to help build credit. KOHO Credit Building is a great example of such services. By maintaining enough money in your account for your monthly subscription, KOHO will report your payments to the credit bureaus to help build your credit.
Not only can you use KOHO to build credit, but you can also use it to keep track of your progress. When you download the KOHO app, you can keep tabs on your credit score any time you like to see where you stand. Every month, KOHO will update your credit score so you can check on your progress.
You can also check your credit score for free online. And when you’re ready to apply for a loan, you can use an online loan comparison platform to find the lowest rates and keep your loan as affordable as possible.
Loan Cost
Several factors impact how much your loan will cost you, including the following:
Interest Rate
The total cost of your loan is directly impacted by the interest rate. The higher the rate, the more expensive your loan will be, which is why it’s crucial that you secure the lowest rate possible.
Your credit score plays a key role in how much interest you pay, but your rate will also depend on the lender. Doing some preliminary comparison shopping between lenders will help you find the best rate. Even a 1% difference in rates can mean the difference between thousands of dollars over the life of the loan.
Term length
The length of your loan term affects your loan costs in terms of monthly payments and your total interest costs. The longer the term period, the lower your monthly payments will be, which can help make your loan more affordable in terms of fitting within your monthly budget. However, a longer term also means you’ll be paying more in interest over the life of the loan, making the loan more expensive overall.
Fees
Your lender may charge various fees for your loan, such as the following:
- Origination fees
- Application fees
- Early prepayment penalties
- Late payment fees
- NSF fees
Lender Reputation
Most lenders are reputable, but there are some predatory lenders lurking in the lending sphere. You need to be mindful of the lender you work with and keep an eye out for red flags.
Working with the wrong lender could put you in a risky financial position. More specifically, you could wind up with an overly expensive loan and one that you cannot repay based on your current finances.
Way To Spot A Loan Scam
Always research the lender before applying for a loan and look out for signs that you may be dealing with a scammer. For instance, if a lender promises you a loan with a low interest rate but requires that you make a large upfront fee to cover insurance, this is a red flag. No legitimate lender will demand that you pay for insurance coverage for your loan.
Lenders should also not make any guarantees that you will certainly get approved for a loan before you apply. Prudent lenders will want to verify your financial situation and creditworthiness before extending a loan. If a lender guarantees approval, this is another sign that you’re likely being scammed.
How To Apply For The Interim Federal Health Program
You don’t need to apply for Interim Federal Health Program coverage under normal circumstances. Your eligibility for the program is determined by your refugee status. Coverage under the program will be automatically activated.
However, if you think you qualify but your claim was rejected, you may need to manually apply. Before applying, first make sure that you’re eligible. If you are, you can apply for the IFHP to get new coverage or extend your existing coverage.
To apply for the IFHP, follow these steps:
Download the IFHP application form and fill it out
Submit the application online or by mail along with all supporting documents
How To Access Health Care Services
Before you visit a medical professional, make sure they’re registered with Medavie Blue Cross, which manages Interim Federal Health Program (IFHP) claims.
You’ll need to bring your Interim Federal Health Program Certificate or Refugee Protection Claimant Document, as well as a government-issued ID when you attend a medical appointment with a registered professional. After your session, you may be given a claim form that you’ll need to sign to show that the medical service or product was provided.
You don’t have to pay for medical services or products if you’re eligible for coverage under the IFHP. Instead, the healthcare provider is paid by Medavie Blue Cross. If you pay for these services, you won’t get your money back.
After you receive your provincial or territorial health card, you’ll continue to receive coverage under the IFHP for supplemental services and prescription medication for up to one year.
What If You Are A Permanent Resident of Canada?
Permanent residents in Canada may be eligible for provincial and territorial health insurance, but there’s a process involved in becoming one. For those who are refugees, refugee claimants, protected persons, victims of human trafficking, and detainees by the CBSA, the Interim Federal Health Program provides required medical coverage.
