Scheduled increases to long-term care rates are cancelled

Islanders living in public long-term care will soon be paying less for their accommodation rates.

The province is pleased to announce that the scheduled self-pay accommodation rate increase put into effect by the previous government has been cancelled. Also, the province is establishing one accommodation rate that will be consistent for all people living in public manors – regardless if an individual is a self-pay or subsidized resident. 

“This is the right thing to do. There are approximately 1,200 Islanders living in long-term care, including 600 being cared for in public manors across the province. We strongly feel that the cost of long-term care needs to be reasonable for Islanders and fair across the system. No one should be asked to pay an excessive cost to live – especially the seniors who have contributed so much to the development of this province.” 

- Health and Wellness Minister James Aylward

To be fair and equitable to all residents of our public manors, government has established a single accommodation rate of $92.19 to be put in place between now and April 1, 2020. If any resident cannot afford this rate, they will be eligible for a subsidy to cover the difference between their income and the accommodation rate.

“We want to ensure that every one who needs it, has access to high quality long-term care,” said Minister Aylward. “We provide subsidies to approximately 90 per cent of our long-term care residents, and we will continue to give assistance to people who cannot afford the accommodation costs for long-term care.”

Going forward, any further increases to long-term care accommodation rates will be comparable to the rates charged to those residents who are subsidized and living in a private facility. These rates are negotiated regularly according to contract schedules, allowing for more predictable and consistent increases.

Health PEI will be directly contacting the people living in long-term care who are affected by these changes.

Long-term care provides specialized nursing and personal care services to individuals who can no longer live on their own, with family or home care supports.

Media contact:
Autumn Tremere
Department of Health and Wellness
902-368-5610
agtremere@gov.pe.ca

Backgrounder 

Government is committed to supporting PEI’s growing aging population. 

To be fair and equitable to all resident of our public manors, government has established one accommodation rate for everyone.  That rate of $92.19 will come into effect October 1, 2019 for residents who moved into a public manor after February 1, 2019, and April 1, 2020 for residents who moved into a public manor before February 1, 2019. If a resident cannot afford this rate, they will be eligible for a subsidy to cover the difference between their income and the rate.

Examples of how the rate change will impact Islanders:

Example 1
A person who entered public long-term care after February 1, 2019 and has the income to pay out of pocket for their accommodations in long-term care, would currently be paying $102.73/day. As of October 1, 2019, this person will pay $92.19/day for accommodation costs. (An approximate decrease of 10 per cent.)

Example 2
A person who entered public long-term care before February 2019, would currently be paying $85.25/day for accommodation costs. Their rates were previously scheduled to increase to $91.00 on October 1, 2019, then to $96.75 on April 1, 2020 and to $102.73 on October 1, 2020. These scheduled rate increases have now been cancelled and this individual will continue to pay only $85.25 on October 1, 2019 and transition to the $92.19 rate on April 1, 2020.

Example 3
A person who cannot afford to pay the accommodation costs for long-term care can apply through the Long-Term Care Subsidization Program for assistance in covering all or a portion of the $92.19/day accommodation costs.  

Accommodation rates for resident who moved into a public facility before Feb 1, 2019

NEW rates
Date

• October 1, 2019 - $85.25/ per day
• April 1, 2020 - $92.19/ per day

Previously scheduled rates (February 2019)
Date

• October 1, 2019 - $91.00/ per day
• April 1, 2020 - $96.75/ per day
• October 2020 - $102.73/ per day

NEW accommodation rates for resident who moved into a public facility after Feb 1, 2019

NEW rates
Date

• October 1, 2019 - $92.19/ per day

Previously scheduled rates (February 2019)
Date

• April 1, 2019 - $102.73/ per day

Long-term care costs are shared by the resident, and the provincial government. If residents are capable, they pay the accommodation costs and personal expenses, and government pays for all health care related costs. Those who cannot pay the standard accommodation costs can apply to have their rate reduced through the long-term care subsidization program.

Any future increases will be comparable to the rates charged to those residents who are subsidized and living in a private facility. This will align the maximum subsidized accommodation rate in public and private homes. This rate will be determined through the negotiated Private Long-term Care Agreement between government and the Private Nursing Home Association of PEI.

The end result will mean that there is a single accommodation rate that applies to all public long-term care residents, as well as those subsidized in a private nursing home. That rate as of April 1, 2020, will be $92.19.