Several families complained to our office about residential care fees charged to their elderly loved ones. The health authorities were charging the maximum fees possible after the elderly residents became medically incapacitated and were unable to complete income tax returns. When families completed the needed income tax returns, the health authorities refused to adjust care fees.

Our investigation noted that the Continuing Care Fees Regulation authorizes residential care to charge a maximum of 80% of after-tax income. These complainants paid well in excess of that amount. As a result of our investigation, the health authorities fully reimbursed the residents the excessive fees paid for care.

We continued to investigate the Ministry of Health because their Home and Community Care Policy directed health authorities to refuse to adjust fees retroactively for the calendar year. Instead, health authorities were directed to adjust fees beginning in the month they received the Notice of Assessment, and not for the full calendar year. Noting the ministry’s policy exceeded the limit of 80% of after-tax income set out in the Continuing Care Fees Regulation, we asked it to amend its policy to align with the Regulation. The ministry agreed and issued a new policy to ensure health authorities do not charge residents more than what is permitted under the law.