What is the Cost Threshold in Canada

What is the Cost Threshold in Canada?

Under the Immigration and Refugee Protection Act (IRPA), some foreign nationals seeking to immigrate to Canada may be found medically inadmissible if they cause excessive demand on health or social services. This means that Canada can prevent these candidates from getting their permits based on the demand they would place on these services.

This article will explore what constitutes the Cost Threshold in Canada, and what the current cost threshold is.

The Cost Threshold in Canada

According to IRCC, the cost threshold comes from the definition of “excessive demand” in the IRPR. This definition mentions the “average Canadian per capita health services and social services costs” or, in other words, the average dollar amount that federal, provincial and territorial governments spend in a year on health and social services for Canadians and permanent residents.

Causing Excessive Demand

‘Excessive demand’ is a calculation that is linked to the average Canadian health services and social services costs per capita, over a period of 5 consecutive years. Of course, the cost threshold change as a result of the year-over-year costs of individual services. For example, in 2020, the cost threshold was $21,204. Then, it was just updated to $21,798 in 2021.

However, on January 4, 2022, Canada updated the cost threshold for excessive demand on health and social services to $24,057.  This means that now, if your expenses exceed $120,285 for five years from the time you enter Canada, then you may become inadmissible.

Among the costs considered to calculate an applicant’s likely needs for social services and healthcare are home care by a nurse, palliative care, chemotherapy, radiotherapy, and dialysis, among others. Nevertheless, our CEO and RCIC, Al Parsai, says the calculations and factors that applicants need to consider are much more complicated than that.

In his article ‘Medical Inadmissibility to Canada‘ he also explains that some people are exempt from excessive demand:

Of course, you can read more about it in his article.

What is a Procedural Fairness Letter?

According to our RCIC, Al, if you receive a procedural fairness letter, it means the officer suspects or believes you are inadmissible to Canada because of medical issues. If you agree with them, you may not immigrate to Canada. However, you could fight back. Consult with a professional if you have received a procedural fairness letter. Don’t take this matter lightly.

Overcoming Medical Inadmissibility

If you receive a procedural fairness letter, you may try to fight back but, if you fail, you may consider the following solutions:

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    Al Parsai, LLM, MA, DTM, RCIC
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    Ashton College Instructor – Immigration Consulting
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