Most people living at provincially subsidized residential care homes will soon be paying more for room and board -- including the six in B.C. with annual incomes of more than half a million dollars, Health Services Minister Kevin Falcon announced yesterday.
A new rate structure based on clients' incomes will begin Jan. 1 and be phased in over two years. About 75 per cent of the 26,000 people living in residential care, most of them seniors, will eventually see their room-and-board costs go up.
The remaining 25 per cent with the lowest incomes will see their costs drop.
Falcon said the increase, while unlikely to be universally popular, is "the right thing to do."
He called it an "unfortunate irony" that B.C. has about six people living in government-subsidized residential care despite annual incomes of more than $500,000.
"That makes absolutely no sense," said Falcon.
"We have to have a system that is going to look after low-income seniors while at the same time ensuring everybody else is paying in accordance with their income and their ability to pay."
The old daily rates ranged from $30.90 to $74.30, while the new rates will range from $29.40 to $96.40.
Examples supplied by the Ministry of Health Services show a client collecting $30,000 in yearly pre-tax income would see their monthly rate for room and board rise from $1,652 to $1,815. The maximum rate would be $2,932 a month.
Meanwhile, someone collecting $14,000 annually would see their monthly rate drop from $940 to $894. Those payments will leave clients with $275 a month for themselves.
For those earning even less, subsidies will be provided to ensure everybody is left with a minimum of $275 a month to spend.
Falcon also pledged to build in hardship provisions so nobody who needs residential care is denied.
He said the new rate structure will eventually yield $53.7 million in additional revenue that will be turned over to regional health units, which will be required to invest the money in improved care.
Health Ministry documents show it costs about $6,000 a month to operate a residential-care bed, when things like medical care, equipment, drugs and special programs, like recreation, are factored in.
Falcon noted the number of seniors in B.C. is expected to double to 1.275 million from 637,000 in the next 20 years and about 5.6 per cent will require residential care.
Meanwhile, Susan Brice, director of the Victoria Silver Threads Centre for seniors, said she was glad to see the proposals will make it easier for low-income people, who typically have the fewest options.
Brice, a Saanich councillor and former Liberal MLA, said it makes sense to ask residential-care clients to pay more if they can afford it.
"These things are always a challenge for governments, to take what is a growing public demand and allocate resources in a fair manner."
