Home care for seniors just like family
Scarborough East, ON
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Budgeting for Home Care Services in Scarborough

  1. Create a Detailed Budget

Once you have an idea of the services and costs, develop a comprehensive financial plan.

Current Financial Assessment: Take stock of the individual’s income sources (pensions, investments, government benefits like CPP and OAS in Canada, RIFs, TFSAs), assets (savings, home equity), and existing expenses.

Calculate “Care Bucket”: Determine how much can realistically be allocated to home care each month.

Factor in Extras: Include potential additional costs like mileage/travel fees, holiday/after-hours premiums, medical equipment, therapy, and medications.

Build a Buffer: It’s wise to add 10-15% for unexpected needs or changes in care requirements.

Review Regularly: Care needs can change, so review and adjust the budget quarterly or as circumstances change.

  1. Explore Financial Assistance Options

Various programs and resources can help offset the cost of home care:

Government Programs (Canada & Ontario Specific)

  • Ontario Health atHome: This is the primary point of contact for government-funded home care in Ontario. They assess needs, determine eligibility, and develop care plans. If eligible, the Ontario government pays for home care services.
    • Family-Managed Home Care: For eligible patients (children with complex medical needs, adults with acquired brain injuries, eligible home-schooled children, or those in extraordinary circumstances), this program allows patients or their substitute decision-makers to receive funding to purchase home care services and employ care providers, offering greater flexibility.
    • Contact: Call 310-2222 (no area code required) or use the Ontario Health atHome map to find care in your area.
  • Employment Insurance (EI) Caregiving Benefits: If you are taking time away from work to provide care for a critically ill, critically injured, or end-of-life family member, you may be eligible for EI caregiving benefits. This includes Family Caregiver Benefits for children or adults, and Compassionate Care Benefits.
  • Ontario Works or Ontario Disability Support Program (ODSP): If you or the care recipient have a low income and/or a disability and are in financial need, these programs can provide support for food and housing.
  • Other Provincial/Territorial Programs: Each province and territory in Canada has varying home care services and funding. Research what’s available in your specific region.

Other Funding Strategies

  • Long-Term Care Insurance: If there is an existing policy, review it to see if it covers in-home services. Consider purchasing a policy if feasible for future needs, keeping in mind premiums can vary significantly.
  • Veterans’ Benefits: Veterans may be eligible for benefits like Aid and Attendance or Housebound benefits to help cover home care costs.
  • Community-Based Resources and Programs: Local organizations, non-profits, and government initiatives may offer financial assistance, respite care, or other support services. Check with your local health department or Area Agencies on Aging (AAAs).
  • Life Insurance Adjustments: Some life insurance policies may allow access to cash value or other benefits to cover caregiving expenses.
  • Savings and Home Equity: Personal savings, reverse mortgages, or home equity loans can provide financial resources.
  • Family Contributions: Openly discuss the possibility of family members contributing financially to distribute the responsibility.
  • Medicard by iFinance: Clients can apply for financing directly through this link https://apply.medicard.com/24273  – For more information feel free to reach out to us.
  1. Leverage Tax Credits and Deductions (Canada Specific)

The Canadian government offers several tax credits and deductions that can help reduce the financial burden of home care expenses:

  • Canada Caregiver Credit (CCC): A non-refundable tax credit for individuals who support a spouse, common-law partner, or dependant with a physical or mental impairment. The amount you can claim depends on your relationship and the dependant’s net income.
    • Eligibility: The person you are caring for must have a prolonged and indefinite impairment in physical or mental functions and rely on you for support (food, shelter, clothing). They don’t necessarily have to live with you.
    • How to Claim: Complete Schedule 5 – Amounts for Spouse or Common-Law Partner and Dependants.
  • Medical Expense Tax Credit: You can claim eligible medical expenses, including amounts paid for attendant care or care in certain facilities (like nursing homes).
    • Attendant Care: Amounts paid to an attendant (not your spouse/common-law partner, and 18+) who performs personal tasks you cannot do yourself. You must either be eligible for the Disability Tax Credit or have a medical practitioner’s certification that services are necessary.
    • Care in a Facility: For retirement homes or senior homes, you can generally claim salaries and wages for care if the care recipient qualifies for the Disability Tax Credit. You’ll need a detailed breakdown from the facility showing amounts paid for staff salaries related to attendant care services.
    • Disability Tax Credit (DTC): This is a key prerequisite for claiming many medical expenses related to care. Form T2201, Disability Tax Credit Certificate, must be completed by the individual with the disability (or their legal representative) and certified by a medical practitioner, then approved by the CRA.
  • Home Accessibility Tax Credit (HATC): This non-refundable tax credit helps with expenses for renovations that improve accessibility or allow a senior to live independently at home.
  • Multigenerational Home Renovation Tax Credit: For eligible renovations to create a secondary dwelling unit for a senior or a person with a disability.

Important Notes for Tax Credits:

  • Keep all receipts and documentation that show the name of the company or individual to whom the expense was paid (including SIN for individual caregivers).
  • For attendant care, you may need specific certifications from a medical practitioner.
  • Consult the Canada Revenue Agency (CRA) website or a tax professional for the most up-to-date information and to ensure you meet all eligibility requirements.
  1. Cost Management Tips
  • Combine Paid and Unpaid Care: Balance professional caregiving with support from family and friends to reduce overall costs.
  • Utilize Community Resources: Look for free or low-cost services like meal delivery, transportation, and social activities offered by local organizations.
  • Bundle Services: Some agencies offer discounted rates for packages or blocks of hours.
  • Co-Op Care: In some areas, neighboring seniors might share a caregiver, prorating the cost.
  • Telehealth and Remote Monitoring: These technologies can help manage care more efficiently and cost-effectively.
  1. Plan for the Future
  • Proactive Planning: Start discussions about care preferences and financial realities early with your loved one and family members.
  • Estate Planning: Work with a qualified estate planning attorney to outline wishes regarding assets, healthcare decisions, and end-of-life care. This can help protect assets and minimize taxes.
  • Professional Advice: Consider consulting a financial planner specializing in senior financial planning. They can provide tailored guidance and help navigate complex financial decisions.

Budgeting for home care requires careful consideration of individual needs, available resources, and potential assistance programs. By taking a proactive and organized approach, you can create a sustainable plan that ensures quality care while managing financial well-being.