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Nursing Home / Long-term Care Financial Assistance in PEI

Introduction and Background

Many people have questions about the cost of nursing homes (also called long-term care homes) in PEI.  Are you concerned about “losing everything” if you need to go to a long-term care facility, which I will call a “nursing home” throughout this article.  Please understand that rules for nursing homes differ from those for community care homes (also called assisted living facilities or retirement homes) and seniors’ apartments.  These latter facilities are for individuals who can look after themselves but perhaps would like or need some assistance with things such as meals and medication.  I discuss financial assistance for community care very briefly at the end of this article.  The rules are very different from long-term care.  Nursing homes are for people who need around the clock nursing care, and is the topic of this article.

Costs to residents of nursing homes were reduced substantially by changes to the Long-Term Care Subsidization Act and related regulations that were changed in 2007, with later updates.  Your assets are no longer required to be sold before you are entitled to a long-term care subsidy, as was the rule prior to 2007.  Changes in 2020 were made related to how subsidies are calculated, with a significant change related to married or common law couples, as discussed below.

Admission to a long-term care facility involves two steps. The first is a “needs” assessment from a medical perspective. The second, and the topic of this article, is a financial assessment if you are applying for a subsidy.  If you are eligible for a subsidy, the government will pay for all or part of your nursing home costs based on the amount of your income reported on your tax return.

Please note that the financial amounts and any other facts discussed in this article can change at any time.  I cannot guarantee that they will be correct at the time you read this, so enquire accordingly.  And, I confess, this is a complex article.  I provide the following topic listing, mostly in the form of questions, to help you find your answers.  However, the discussion and answers are set out in the PDF file, which is a 13 page document if you plan on printing it.  In addition to my article below, you may find these links useful:

To read my PDF file, you may need to download Adobe Reader.  Click below:

Nursing Home / Long-term Care Financial Assistance in PEI

Topic Listing

  1. If admitted to a nursing home, what will I need to pay for?
  2. How much does a nursing home cost?
  3. Will I be eligible for financial assistance?
  4. Must I sell my assets to pay for my nursing home accommodations?
  5. Is my family home safe or will I need to sell it?
  6. How is eligibility for government subsidies determined?
  7. Three significant cautions regarding your application of which you should be aware.
  8. What if my spouse cannot afford to live in the family home after my admission to a nursing home?
  9. After admission to a nursing home, how is ongoing eligibility for financial assistance assessed?
  10. Can I make changes prior to admission to a nursing home to increase my subsidy?
  11. A few closing comments on subsidies.
  12. What if a person has a life insurance policy requiring annual premium payments and income is not sufficient to pay for these?
  13. What happens to the monthly comfort allowance if it is not spent?
  14. Are any exceptions made?
  15. Who do I contact for further information?
  16. What happens when a person moves from community care to nursing home care?
  17. What if a person does not require nursing home care but cannot afford the costs of living in a senior’s residence or community care facility?
  18. Important tax considerations related to real estate transactions
  19. A few final comments.
  20. Did this article help you as a resident of P.E.I.?

Click on the link below for my full article as a PDF file. To read the PDF file, you may need to download Adobe Reader.

Nursing Home / Long-term Care Financial Assistance in PEI

Blair Corkum, CPA, CA, R.F.P., CFP, CFDS, CLU, CHS holds his Chartered Professional Accountant, Chartered Accountant, Registered Financial Planner, Chartered Financial Divorce Specialist as well as several other financial planning related designations. Blair offers hourly based fee-only personal financial planning, holds no investment or insurance licenses, and receives no commissions or referral fees. This publication should not be construed as legal or investment advice. It is neither a definitive analysis of the law nor a substitute for professional advice which you should obtain before acting on information in this article. Information may change as a result of legislation or regulations issued after this article was written.©Blair Corkum