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Ontario Cuts Fee Increases Planned for Nursing Homes

By Caroline Mallan, Toronto Star

 May 30, 2003

The Ontario government has reversed a contentious plan to hike nursing home fees by $2 a day beginning July 1, scaling back the hike to $1.16 a day instead.

The move comes a year after the Conservative government of Premier Ernie Eves sparked an uproar among Ontario's seniors after it quietly approved a 15 per cent hike in daily accommodation fees for nursing home residents.

Then, after weeks of intense political pressure, the Tories announced they would phase in the "necessary" increase over three years, with the largest portion of the jump — or $3 a day — taking effect last July and $2-a-day increases kicking in July, 2003, and July, 2004.

The money goes directly to the nursing homes, but the rates are set by the provincial government, which subsidizes the cost.

Yesterday, Eves said his government has changed its position again and will lower the next two planned hikes to keep pace with cost-of-living-increases awarded to seniors through Old Age Security.

"To provide a measure of certainty for seniors in long-term-care facilities, the co-payment increase for next year as well will be the same as the rate of inflation," Eves said during a visit to a west-end nursing home. The move is the latest in a stream of "senior-friendly" announcements aimed at shoring up the elderly vote in Ontario in advance of a provincial election. Other moves include eliminating mandatory retirement and refunding seniors for the education portion of their property tax bills.

This latest move will see the current daily rate for basic accommodation in a four-person ward jump from $47.51 to $48.67, while a private room will cost $66.67 per day.

Long-term Care Minister Dan Newman was at odds to explain how a measure he defended so vigorously just one year ago as essential could in turn be reversed so quickly. At that time, Newman said the increase was needed so the province could divert more money towards nursing and personal care in long-term-care facilities.

The move will cost the province $11.6 million a year — money Newman said is part of a $100-million budget increase for long-term-care facilities in the province. The specific cost of this move was not listed in the recent provincial budget.

NDP critic Shelley Martel said if the government was serious about helping seniors it would address last year's fee hike, which was three times the rate of inflation.

Donna Rubin, president of the Ontario Association of Non-Profit Homes and Services for Seniors, welcomed news of the reduction in fees.  


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