Long-Term Care Subsidy Program

Overview

The Long-Term Care (LTC) Subsidy Program helps eligible Islanders pay for their accommodation (room and board) in an LTC home. Your subsidy amount is based on your net income from last year’s tax return (Notice of Assessment provided by Canada Revenue Agency).

Questions? Call (902) 218-3891 or email ltcsubsidy@ihis.org

Looking for the Community Care Subsidy Program? See Social Assistance Program

What the Program Includes

Accommodation Subsidy

What you pay: Residents in LTC pay for accommodation (room and board). The current daily rate is $116.96 for a semi-private room. If you live in a privately-run home, rates may differ.

Income threshold: You qualify to receive a subsidy if your net annual income is below $44,250.40 (based on last year’s Notice of Assessment). The program is income-based only—your assets (e.g., home and property are not considered).

How the subsidy is calculated: People with no income receive the maximum subsidy. Otherwise, your subsidy equals $44,250.40 minus your income. The examples below are meant to help explain the idea.  Your final subsidy will be determined during the assessment.

• Examples of subsidy amounts:

Additional Support After Approval

Comfort Allowance: A personal spending amount of $130.00 per month for items like toiletries, snacks, clothing, or haircuts. Unspent funds remain in your account.

Nursing Home Drug Program (NHDP): If you qualify for any amount of accommodation subsidy, you are eligible to enroll in NHDP (covers prescription drugs for eligible residents). For more information, see Nursing Home Drug Program

You will be automatically enrolled for both programs if you qualify.

How Is the Income Threshold Established?

The income threshold is calculated in the following way: 

How Is the Daily Accommodation Rate Determined?

Health PEI considers factors such as inflation and costs (e.g., food, electricity), rates in other provinces, and negotiations with private LTC operators.

Eligibility for the Subsidy Program

You are eligible if:

• Home Care has determined you are eligible to move into an LTC home.
• Your net annual income is less than $44,250.40.
• You have used all other potential sources of assistance (for example, private insurance or Veterans Affairs Canada benefits, where applicable) and can provide proof of denial if asked.

How to Apply

If Home Care determines that you need LTC, a Home Care LTC Placement Coordinator will give you the LTC Subsidy application. You must be approved for long‑term care before you can apply for the subsidy.

Application Process

1. Contact Home Care to talk about LTC placement (** see Home Care contacts at the bottom of this page).
2. If Home care thinks it is appropriate, they will do an assessment to see if you meet the requirements for long-term care. If you do, they will give the LTC Subsidy application form.
3. You will need your prior year’s Notice of Assessment (from the Canada Revenue Agency) to complete the application. Once completed, the application is sent to the LTC Subsidy Office

If you are applying while you are in hospital, the same steps apply. Your healthcare team will assist you.

Review and Approval

Financial Assessment Workers will review your documents and may contact you for more information. If your application is missing any required documents, they will request them. If the documents are not received within 30 days, your application will be cancelled, and you will be notified.

Once a decision is made, you will receive a written notice. After you move into LTC, you and the LTC home will receive a “Schedule A” outlining your subsidy. Health PEI pays approved funds directly to the LTC home once Schedule A is received.

Annual Review and Rate Changes

Once you start to receive a subsidy for your LTC home, you do not need to re-apply again.  The Subsidy Program reviews your net income every year. If your income changes, your eligibility may change and you will be notified. You must file your income tax return each year by April 30.

Health PEI may change the LTC daily accommodation rate after careful review, which would be applicable to all LTC residents. If that happens, you will receive at least 30 days’ notice. If you already receive subsidy, you do not need to do anything.

If You Do Not Qualify: Appeal Process

If your application for subsidy is denied you have the right to appeal. Download the Letter to Start an Appeal Process. The Financial Assistance Appeal Panel must receive your letter within 30 days of your subsidy denial. No assistance will be provided unless the Panel grants the appeal.

If there has been a reduction, suspension, or cancellation of assistance, you have the right to appeal. In this case, your previous level of assistance will continue until the Panel decides. If your appeal is not successful, any assistance paid during the appeal may be considered an overpayment and become a debt owed to the Government.

Common Reasons for Denial

• Your reported income is above $44,250.40.
• You did not file an income tax return, so there is no Notice of Assessment to confirm income.

Home Care: Placement Coordination Services – Contact Information