February 15, 2000
(Health and Community Services)

Policy change means 
improved lifestyle for spouses of individuals entering long term care facilities

A $750,000 announcement today by the Minister of Health and Community Services will be welcomed news for spouses of individuals entering long term care facilities in this province. Roger Grimes announced a change in the financial assessment policy for clients entering long term care facilities in the province to ensure that spouses who remain at home are not negatively impacted financially as a result of their spouse being placed in a home. The three quarters of a million investment is effective immediately and will assist approximately 150 people in Newfoundland and Labrador.

Before an individual or client enters a long term care facility in this province, a financial assessment is carried out to determine what portion, if any, the individual is able to pay for care in that facility. Up until now, only a client�s private income could be transferred to the spouse remaining at home. With the change in policy announced today, some or all of the client�s total private and federal maintenance income (like old age security (OAS,) guaranteed income supplement (GIS), or Canada Pension Plan (C.P.P.) - can remain with the spouse at home if required, to ensure the spouse is able to maintain a reasonable standard of living.

"This change in policy reflects the philosophy of the Department of Health and Community Services that people�s lifestyles should not be affected as a result of a change in their partner�s life as when their spouse must enter a long term care facility," said the minister. "In the past, there have been isolated incidences where our policy resulted in spouses at home having to avail of social assistance as a result of losing the ability to use their husband or wife�s income after they enter a nursing home. This should no longer occur."

The financial assessment policies of the Department of Health and Community Services are very generous from the point of view that every reasonable expense is allowed to be deducted prior to determining whether the community spouse can make any contribution toward the resident spouse�s cost of care. These allowable expenses include a basic standard allowance for the spouse of $750 per month for personal allowance, household maintenance, vehicle maintenance, and so on. An additional amount of $350 per dependent child each month is also allowed. On top of this, the spouse at home may claim more than 20 different types of expenses for everything from heat/light and furnace insurance to vehicle payments and union dues.

Media Contact: Carl Cooper, Communications, (709) 729-1377.

•  In this province, 2,920 men and women receive services in our 19 nursing homes and 18 Community Health Centres.
  

•  The financial assessment process carried out before people enter a nursing home is designed to balance a person's ability to pay with the cost of providing the service. Costs for long term care are shared solely by the individual and the province, and do not involve any direct subsidy from the federal government. This province is no different than any other province when it comes to subsidizing individuals in long term care facilities. Government provides subsidies to those who cannot afford to pay.
  
•  A person entering a nursing home can keep their retirement investments (RRSPs and RRIFs). Children's inheritance is not affected as the spouse at home can retain 50 per cent of cash assets for their use. This 50 per cent is not assessed toward the cost of care for the spouse in the nursing home, and the spouse at home can use the cash at his/her discretion.
  
• The sources of funds used to determine a person's ability to pay are incomes and cash assets like savings accounts and Canada Savings Bonds. Again, RRSPs and RRIFs are specifically excluded from the definition of cash assets, as are houses, land, cottages or personal effects.
  
• Government pays for roughly 80 per cent of the costs of long term care facilities through its provincial budget. The total cost of care in a nursing home is $4,200 per month. This includes services like social work, physiotherapy, recreation, nursing, food services, housekeeping, pastoral care, and occupational therapy.
  
•  In assessing an individual's ability to pay for any or all of the costs associated with living in a long term care facility, an extensive list of allowable expenses for the spouse living at home is determined. This list includes a basic standard allowance for the spouse of $750 per month for charities, personal allowance, household maintenance, vehicle maintenance, and so on. An additional amount of $350 per child each month is also allowed. On top of this, the spouse at home may claim more than 20 expenses for everything from heat/light and furnace insurance to vehicle payments and union dues.
  
•  The Department of Health and Community Services� goal is that the spouse in the home be able to maintain the same standard of living as they enjoyed prior to their spouse entering a nursing home. And, if the spouse at home does not have enough income to pay for the expenses outlined above, the private and federal maintenance income of the spouse in the nursing home may be retained by the spouse at home to help pay for expenses.
  
•  If a situation arises where the spouse at home has a fairly high income, that spouse will be expected to contribute to the cost of care for their spouse in the long term care home based on the financial assessment of the Department of Health and Community Services.
  

•  Government spends $170 million a year on seniors through nursing, personal care and community care homes; through home support; low income seniors' benefit program; seniors' drug program; and increased clothing and personal comfort allowance for seniors living in Long Term Care Facilities.

2000 02 15                                                             12:30 p.m.