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Long-Term Care Co-Payments and Rate Reduction Updates

Archived Backgrounder

Long-Term Care Co-Payments and Rate Reduction Updates

Ministry of Health

The Ontario government is helping maintain quality service for long-term care home residents.  Effective July 1, 2012, the province will make changes to the accommodation charges paid by long-term care home residents and improve the program that supports individuals with lower incomes.

Rate Reduction Program

The Ontario government is implementing changes to improve the rate reduction program for residents living in basic accommodation. The changes will better recognize each person's unique financial situation, allowing for a more accurate assessment of their ability to pay. In addition to excluding RRSP income, residents can now exclude other types of lump-sum payments such as the Guaranteed Income Supplement or income from a Registered Retirement Income Fund.

Residents currently living in a long-term care home will be able to reapply for their rate reduction on an annual basis. Existing rate reductions expire on June 30, 2012. Current long-term care residents wishing to reapply or apply for a rate reduction can receive direct assistance from staff in their long-term care home.

Basic Accommodation Co-Payment Rates

The Ontario government is updating the co-payments made by residents of long-term care homes to ensure the rates more accurately represent the current cost of meal and accommodation services.

The co-payment that residents pay for basic accommodation will increase from $53.23 to $55.04 per day, a difference of $1.81 per day. The updated rates are consistent with recent increases to inflation.

Preferred Accommodation Rates

The preferred accommodation charges for residents in semi-private or private rooms will also be updated. This is the first increase for preferred premiums since 1993. Residents in semi-private and private accommodation are required to pay the basic rate plus a premium for the additional privacy. Updated rates will apply only to residents admitted on or after July 1, 2012 to a newer long-term care home.

The higher preferred accommodation rates for newer long-term care homes recognize the investment required to redevelop long-term care homes and will encourage and support the redevelopment of older long-term care homes so that all long-term care residents can enjoy enhanced privacy and comfort.

This annual increase assists long-term care homes in offsetting inflationary increases in accommodation (e.g. heat, hydro, building maintenance etc.) and meal costs. This helps maintain quality services for residents/patients.

The preferred accommodation premiums for residents currently living in long-term care homes will not increase. However, their rates will increase by $1.81 per day based on the increase to the basic accommodation co-payment.

The table below provides the new rates that will apply as of July 1, 2012.

Type of Accommodation

New
Daily
Rate
New
Monthly
Rate
Increase Per Day

Long-Stay Resident:




Basic

$55.04

$1,674.14

$1.81

Semi-Private




Residents admitted on or after July 1, 2012 to a newer LTC home (meaning that the bed is classified as "NEW" or "A" according to Ministry design standards)

$64.04

$1,947.89

$2.81

Residents already living in an LTC home prior to July 1, 2012 or residents admitted to an older LTC home (meaning that the bed is classified as "B", "C", "D" or Upgraded "D" according to Ministry design standards)

$63.04

$1,917.47

$1.81

Private




Residents admitted on or after July 1, 2012 to a newer LTC home (meaning that the bed is classified as "NEW" or "A" according to Ministry design standards)

$74.79

$2,274.86

$3.56

Residents already living in an LTC home prior to July 1, 2012  or residents admitted to an older LTC home (meaning that the bed is classified as "B", "C", "D" or Upgraded "D" according to Ministry design standards)

$73.04

$2,221.64

$1.81

Short-Stay Resident (Respite Bed)

$35.63

N/A

N/A

 

 


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