Ailing Parent

Funding Care

Financial Implications of an ailing Parent

A major concern when a parent falls ill is ensuring that there is money to pay for the care he or she needs.

A major concern when a parent falls ill is ensuring that there is money to pay for the care they need. While basic, essential medical expenses are covered by government plans, additional expenses such as in-home or residential care can be substantial. There are a number of sources of funding for these costs:

Heath Care Cost

Elderly people typically have far more medical issues and expenses than younger people and depending on the nature of those expenses the individual or his or her family may have to pay for them personally.

Although there are provincial/territorial variations, all Canadians can assume that their basic, essential health care needs will be met under the government programs. While we are quite fortunate as Canadians in regards to our health care, there are some expenses that are not covered by the government. Now that your parent has an illness, you may be concerned about what those expenses may be and how you will be able to pay for them.

For example, the cost of prescription drugs are the second largest health expense in Canada after hospital care. However, out-of-hospital drug costs are not covered under the Canada Health Act so any reimbursements for prescription drugs are a provincial and territorial concern. The amount of provincial/ territorial coverage varies fairly dramatically across the country, but as a general rule, seniors will receive assistance in covering drug costs. Those who receive social assistance will pay only as much of 35% of the costs. Consequently, it should be assumed that there will most likely be drug expenses incurred that will not be reimbursed by the government.

Fortunately, many retirees/seniors will have some degree of private or company insurance that will cover at least some of their drug costs. You should contact your provincial/territorial authorities to determine if your parent is eligible for government drug expense assistance. You should also determine whether he or she is covered under any company or private insurance.

Examples of some of the other health related expenses that will not be covered by provincial plans are:

  • wheelchairs or other transportation devices
  • hearing aids
  • alterations to a home to make it usable by a disabled person
  • in-home care
  • special vehicles

However, there are a number of government programs that can help your parents pay for these costs.

Home Care - Some of the areas of assistance to be considered are:

Institutional Care

Your parent’s illness may be such that they require some degree of full-time care in a residential facility.

If it is decided that your parent cannot continue to live at home during his or her illness, you will have to consider the out-of-home options, all of which will have different financial implications. As mentioned earlier, this will probably represent a significant change in your parent’s life and it is very important that he or she is brought into the discussion and consulted if he or she is able, before any decisions are made. Other family members should also be consulted. The potential options are:

Have Your Parent Live In Your Home or the Home of Another Child
Questions to Consider:
Does your parent want to do this?   What will be the effect on the current family situation?
What are the costs (renovations, additional living costs, etc.)?  
How will the additional costs be shared?   What time commitment will be required from family members?

Institutional Care for an Ailing Parent

Generally speaking there are three types of institutional care:

Not surprisingly, in the three options above, the independent living is the generally the least expensive while the specialized nursing or long-term care facilities are the most expensive, reflecting the degree of assistance required by the resident. However, this is not always the case as independent living can be just as expensive if a significant amount of care is needed.

Finding a Suitable Care Facility

Given the large number of facilities available across the country, this will require some research. It is assumed that your parent will want to stay in his or her own community so a local search is the best way to begin. The internet can certainly be of assistance as well as talking to friends and local medical professionals.

Once some potential facilities have been identified, do a web search. Visit the facility’s website to get a feel for what they do and how they do it. A web search may also bring up independent comments and observations from others.

You might also contact associations such as the Canadian Association of Retired People (CARP), who may have some information about the care facility.

A personal visit to the facility is extremely important. Once it has been determined what sort of care your parent requires, a checklist should be completed to ensure that the individual will be getting the care that he or she needs. Some approaches to take are:

  • make an appointment to have a tour
  • consider dropping by unannounced at a subsequent time. With a scheduled appointment it is assumed that the facility staff will be ‘putting their best foot forward’ and the impression given may not be indicative of the day-to-day situation.