How to Reduce Long-Term Care Fees in Newfoundland and Labrador

The client contribution your parent pays for long-term care is not set in stone. Several official — but under-publicized — deductions and policies can lower the monthly bill by hundreds of dollars. These are not loopholes; they are provisions built into the provincial financial assessment framework.

The Pre-Paid Funeral Deduction

If your parent holds a pre-arranged funeral policy or burial insurance, the premium payments can be deducted from the income assessment. This deduction is worth up to $120 per month, on a policy capped at $10,000 in total value.

For a senior already paying the maximum $2,990 per month, this single deduction may not change the number. But for those in the middle income range — where every dollar of assessed income pushes the fee higher — a $120 monthly deduction reduces the annual client contribution by $1,440.

If your parent does not currently have a pre-arranged funeral policy, consider setting one up before the financial assessment. The deduction takes effect immediately once the policy is declared.

The Three-Month Temporary Household Expense Claim

When a single home-owning senior enters long-term care, the province allows certain household operating costs to be claimed as allowable deductions for up to three months during the transition period. This recognizes that the family needs time to deal with the home — it does not simply become free to maintain the moment the parent enters care.

Claimable expenses include utility bills (heat and electricity only), property taxes, mortgage payments, and home insurance premiums. These deductions can reduce the client contribution substantially during the critical first months of placement.

The catch: you must submit the claims with supporting documentation (actual bills) to the Financial Assessment Officer. The deduction is not automatic.

The Financial Hardship Policy

NL Health Services administers a formal Financial Hardship Policy that allows regional health authorities to adjust or waive client contributions when applying the standard formula would cause significant financial hardship.

This policy is rarely advertised but is officially available. Common qualifying situations include a sudden drop in pension income, unexpected medical expenses not covered by MCP, or a spousal death that restructures the household's financial position.

To invoke it, submit a written request to your assigned Financial Assessment Officer with documentation of the hardship.

Spousal Expense Deductions

If one spouse enters care while the other remains at home, the community spouse can claim more than 20 verified monthly expenses before the client contribution is calculated:

• Mortgage or rent payments
• Property taxes and home insurance
• Electricity and heating fuel
• Telephone line
• Vehicle payments
• Union dues and professional expenses
• Basic spousal allowance of $750/month
• $350/month per dependent child

If these verified expenses exceed the community spouse's own income, the institutionalized senior's CPP, OAS, and GIS payments can be legally redirected to cover them — and that redirected income is excluded from the care fee calculation.

Ancillary and Preferred Accommodation Fees

Watch for costs that sit outside the standard client contribution:

Ancillary fees: Some facilities charge separately for phone, cable, internet, and specialized services like foot care. These are not covered by the provincial subsidy and are billed directly to the resident.

Preferred accommodation: If your parent requests a private or semi-private room instead of standard ward accommodation, additional charges apply. For hospital patients awaiting LTC placement, a daily ward rate of $115+ can be charged during the transition period.

Understanding which charges are negotiable and which are fixed is critical when reviewing an admission contract. The Newfoundland and Labrador Long-Term Care Costs & Subsidies Guide includes a contract review checklist that flags these common surcharges before you sign.

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