Plan for Affordable Nursing Home Care Released

Seniors will pay less toward their nursing home health care costs every year until they eventually pay only for room and board, Health Minister Jane Purves told seniors today, April 7. When this point is reached, government will assess seniors' ability to pay by considering income only -- and stop considering assets.

Health Minister Jane Purves said this point will be reached no later than April 1, 2007. "At that time, we will be spending about $40 million annually to make nursing home care the most affordable in Atlantic Canada, and as affordable as it is in Ontario and West," the minister said. "Even more significantly, seniors will be able to keep and pass along to their children and family the assets that they have worked for over their lifetimes."

In November 2002, government announced plans that allowed seniors to protect more assets when calculating what they have to contribute to their care. In the 2003-04 budget, $8.5 million has been allocated for this and to help reduce the daily rate that seniors pay.

In 2004-05, the $8.5 million will be at least doubled to build on the savings announced in the 2003-04 budget. That means each senior will then save $32.20 a day or almost $12,000 a year. These savings will continue to grow until the health care costs -

• now about $85 of the $150 average daily rate -- are fully covered by government.

Ms. Purves said she would like to cover the health care costs immediately. However, government needs to balance this investment, which benefits the 20 per cent of seniors who now pay their health care costs in nursing homes, with investments in pharmacare and the quality of nursing home and home care that benefit all seniors.

"We are keeping our commitment to eliminate the need for seniors to pay their health care costs in nursing homes," she said. "We are also taking an extra step, so seniors are eventually relieved of the anxiety of presenting and potentially losing their hard- earned assets."

This move will also streamline administration costs. Care co- ordinators can do the simpler income assessment, eliminating the need for the Department of Health's eligibility review office and saving about $750,000 a year, beginning in 2007.

"By streamlining administrative costs, tax dollars can be invested in benefits for seniors instead of intrusion into their lives," Ms. Purves said.

Government's commitment to affordable nursing home care is part of the Your Health Matters plan, released in March 2003. The decision to eliminate the asset assessment is in line with the commitment in Your Health Matters to treat seniors with dignity and respect.