Budget Bulletin: Cost of Care -- Reducing Nursing Home Costs for Seniors

FINANCE--Budget Bulletin: Cost of Care -- Reducing Nursing Home Costs for Seniors

Effective Jan. 1, 2005, the province will pay the full cost of health-care services for seniors residing in nursing homes.

The Department of Health is investing an additional $9.2 million in 2004-05 to bring this initiative fully on stream in this fiscal year, almost two years ahead of schedule. This builds on work begun last year to assume the cost of health care for seniors over a three-year period through phased-in subsidies. Last year, $5.5 million was invested to provide seniors with a daily $12.75 subsidy for their health-care costs.

As a result of these changes going into effect Jan. 1, 2005, nursing home residents will be able to keep more of their income

• approximately 15 per cent, a minimum of $150 -- each month.

In addition, those entering nursing homes as of Jan. 1, 2005, will be assessed for their ability to pay based on their income only and not on their assets. This change will also simplify the assessment process.

Health-care services provided in nursing homes include the cost of nurses, licensed practical nurses, occupational therapists, physiotherapists and others who are employed by the home.

These costs make up $91 of the $162 average daily rate at nursing homes.

About 80 per cent of seniors residing in nursing homes already had their health-care costs subsidized by the province. Now, all seniors residing in nursing homes will benefit from this program. When fully implemented, the program's annual budget will be approximately $42 million, part of the $246.6-million Long Term Care budget.

NOTE: For further 2004-05 budget information, see the Department of Finance website at www.gov.ns.ca/finance .