May 17, 1996
(Health)

Details on Changes in Long Term Care Rates

Health Minister Lloyd Matthews today provided further details on changes to long term care rates announced yesterday. "The increase in rates applies only to those residents who have the ability to pay some additional costs," said the minister. "This applies to a very minimal number of residents in our long term care facilities."

"One of the challenges we face in the health sector is an aging population and we have to deal with the situation now," added the minister. "We are going to have to begin to make budgetary adjustments to reflect the fact that in the next 10 or 15 years, we will have a greater number of senior citizens in this province. It is only fair to expect someone with sufficient income to pay more for their care."

The cost of providing nursing home care is approximately $4,000 per month per person. Residents currently pay a maximum of $1,510 per month towards the cost of their care, regardless of income levels or savings. Those who pay the universal rate of $1,510 account for only 12 per cent of all nursing home residents.

The change in rates announced yesterday means that government will be able to recover a more representative figure of the cost of providing nursing home care. "This decision is a fair and reasonable one," said Mr. Matthews. "If someone can afford to pay the full cost, or a rate higher than $1,510 per month, then it is not unreasonable to expect them to make some financial contribution."

The amount each resident currently contributes towards the cost of their care depends upon their financial situation. In instances where cash savings are below $5,000 per individual and $10,000 per couple, the amount paid will be determined by monthly income. Overall, a small number of residents pay the universal rate so for the majority, this change does not impact upon their monthly rates.

With this change, it is estimated that government could generate an additional $3 million annually. The increase is expected to take effect on July 1, 1996.

Contact: Jill Sooley, (709) 729-1377.