N.W.T. leaders say Ottawa is underfunding Indigenous health-care program by millions

A federal program meant to improve access to care for Indigenous peoples has been costing the N.W.T. government millions of dollars because the federal government underfunds it, say some leaders in the territory.

The Non-Insured Health Benefits (NIHB) program pays for some medical costs including dental care, vision and out-of-territory medical travel for First Nations and Inuit people, according to Indigenous Services Canada (ISC). In the Northwest Territories, the federal program is administered by the territorial government.

In an email to CBC News on Wednesday, a spokesperson for the territorial government said the actual cost of medical travel in the territory has spiked, while federal funding for NIHB has not kept pace.

"As a result, there is a funding shortfall that creates pressure on the territorial health system," the email states.

In practice, the N.W.T. government says it has covered this gap to ensure residents eligible for NIHB can keep travelling for medical care without facing extra out‑of‑pocket costs.

"Covering the shortfall ensures First Nations and Inuit residents are able access the full range of Non-Insured Health Benefits they are entitled to," the government states. "The [territorial government] continues discussions with [Indigenous Services Canada] about aligning federal funding with the true cost of delivering medical travel in the Northwest Territories. "

Denny Rodgers is the MLA for Inuvik Boot Lake. He expressed his concerns about the status of the program in Legislative Assembly last week.

“ISC continues to underfund this program, leaving our territorial health system to subsidize a federal responsibility,” Rodgers said. “It is like asking a small mom-and-pop shop to cover the cost of a billion-dollar corporation. It simply isn't fair and it is not sustainable."

Rodgers isn’t alone in his complaints. The territory’s health minister, Lesa Semmler, says Ottawa’s financial shortfalls have cost this government millions of dollars over the years.

In the legislature last week, Semmler said the territory had to spend $13 million in 2024/25 fiscal year to help cover the costs of the program.

CBC reached out to Indigenous Services Canada for comment. In an email, a spokesperson for the department says both levels of government are discussing this current situation, but could not provide further details on the discussions.

The most recent agreement between both governments expired last March, the email says.

“Discussions with each territorial government are ongoing related to the renewal of NIHB agreement for the 2025/26 fiscal year. In the interim, the territorial government continues to administer integrated service delivery for all residents,” the statement reads.

It adds that the territory received an additional $24 million from Indigenous Services Canada for the 2024/25 fiscal year to offset the increasing cost of medical travel and health-care administration, on top of its existing NIHB funding.