Released on May 10, 2002
The government has cancelled a proposed fee increase for long-term careresidents that was scheduled to take effect this coming October.
At the end of April, Premier Lorne Calvert put the proposed changes on hold
and under review. Today, the premier announced fees for the 8,900 seniors
and people with disabilities who live in long-term care will remain at
current levels.
"In addition to informal discussions I have had in several Saskatchewan
communities, the Minister of Health and I met with representatives of
Saskatchewan seniors and people with disabilities to discuss the impact of
the planned increases," Calvert said. "We have listened to their thoughts
and concerns, and have come to the conclusion these increases did not
strike the right balance between the contributions these people have made
to Saskatchewan over their lifetimes, their current lifestyles, and their
responsibility to pay a reasonable share of the actual cost of long-term
care services."
The fee increase would have generated an additional $7.4 million over the
last half of this fiscal year, and $14.8 million annually. This is over
and above an additional $10 million allocated to long-term care in the
government's 2002/03 budget.
Long-term care costs are heavily subsidized by the province. With the
decision to hold the line on fee increases, the provincial government will
spend $344 million this year on long-term care, which amounts to about 77
per cent of the total cost of providing 24-hour care and accommodations.
Resident fees make up the other 23 per cent
"Other options to the long-term care fee structure were considered,"
Calvert said. "But in the final analysis, the existing method of
calculating fees is considered in line with public expectations that long-
term care should be treated as part of the province's Medicare system with
increased costs funded primarily through provincial tax revenue.
"People have told us even though it is not a covered benefit under the
Canada Health Act, long-term care has an important place among the basket
of health services the province supports. We have listened and we are
acting accordingly."
Calvert anticipates an improving revenue picture for Saskatchewan with
higher oil prices and a robust energy sector. However, if sufficient
revenue is not available by this fall to cover the long term care fee
shortfall, it will be offset by a reduction in the Highways and
Transportation department's winter project expenditures.
No scheduled highway construction projects for 2002/03 will be affected.
"Our government is committed to providing the best quality of health care
possible. However, we must also live within our financial means," Calvert
said. "Maintaining increased government support for long-term care means
making other difficult choices."
Long-term care residents will continue to pay a minimum fee of $828, plus
50 per cent of any income they have above $994 a month to a maximum of
$1,561 a month. Routine adjustments to monthly fees and the minimum
monthly allowance for personal expenses will continue to occur, indexed to
any increases made in Old Age Security payments for senior citizens.
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For more information, contact:
James Millar
Director, Media Services
Regina
Phone: (306) 787-6349