Reducing the Cost of Long-Term Care in Ontario: A Guide to the Rate Reduction Program
Elderado
Jul 3, 2025, Updated on Jul 3, 2025
Long‑Term Care Cost Help in Ontario: Guide to the Rate Reduction Program
Updated July 3, 2025
Finding a long‑term care home in Ontario can feel overwhelming—especially when you see the price tag. The basic accommodation rate is now $2,085.37 a month, and preferred rooms cost even more. But if your income is limited, you may not have to pay the full amount.
This guide explains—in plain language—how the Long‑Term Care Rate Reduction Program works and how it can help lower your monthly bill.
Why Long‑Term Care Costs Matter
Ontario sets the daily “co‑payment” you pay for a long‑term care bed. On July 1, 2025, the basic rate increased to $68.56 per day. That’s $25,024.44 a year—and it only covers room and board. Many families worry they can’t afford it.
What Is the Rate Reduction Program?
The Long‑Term Care Rate Reduction Program is a provincial subsidy that lowers the basic accommodation fee for low‑income residents. Here’s the quick version:
Who it helps:
- Residents in basic rooms
- Couples sharing a two‑bed room that has been re‑designated as basic
Who it doesn’t help:
- Regular semi‑private or private rooms (those come with extra premiums)
How it works: The province reviews your net income and family situation each year, then reduces your monthly bill so you only pay what you can afford.
Who Can Qualify?
You likely qualify if:
- You're single with no dependants, and your annual net income is $26,812 or less
- You're supporting a spouse or child at home, and your income after supporting dependents is $26,812 or less
Income threshold shown for 2025. The exact cut‑off is subject to individual circumstances.
Other rules:
- You must already live in the long‑term care home (apply within your first 90 days).
- You—or your legal representative—must sign and file the application.
- You need to re‑apply every year between July 1 and September 28.
How Much Could You Pay?
The ministry uses this simple formula:
Reduced Monthly Fee = (Your Net Income ÷ 12) – $149 Comfort Allowance – Dependant Deductions
- Net income: Line 23600 on your tax Notice of Assessment, minus certain exclusions (like Registered Disability Savings Plan withdrawals).
- Comfort allowance: You keep at least $149 per month for personal expenses.
- Dependant deductions: Extra money you keep if you support a spouse or child at home.
Example: Maria earns $24,000 a year and has no dependants.
- $24,000 ÷ 12 = $2,000
- $2,000 – $149 = $1,851 ← That’s her new monthly fee, saving her $234 every month.
Most residents still pay something, but far less than the full basic rate.
How to Apply
1.Collect benefits first. Make sure you’re already receiving:
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS) or Ontario Disability Support Program (ODSP) if under 65
2.Tell the home you’re applying. Staff will give you the latest Rate Reduction Application forms.
3.Gather documents. You’ll need your latest Notice of Assessment and proof of any income changes.
4.Fill out the form. Ask staff for help if you’re unsure.
5.Submit within 90 days of moving in (or between July 1‑Sept 28 to renew).
6.Watch the mail. You’ll get a letter showing your new reduced rate once the ministry processes your application.
Frequently Asked Questions
Do I have to re‑apply every year?
Yes. The program runs July 1 to June 30. If you don’t re‑apply, you’ll be charged the full basic rate until your new application is approved.
Where can I get help with the form?
Ask staff at your long‑term care home, call 1‑866‑434‑0144, or email [email protected].
What happens if my income changes mid‑year?
Tell the long‑term care home right away. They can submit an update so your fee better matches your new income.
Next Steps
- Compare long‑term care homes in Ontario: Use Elderado’s search tool to compare every long-term care home and retirement home.
- Share this guide. If it helped you, pass it on—many families don’t know the program exists.
Need more help? Visit the Ontario government’s Paying for Long‑Term Care page for detailed rules.
Elderado helps Ontario families find the right long‑term care or retirement home, faster.
Elderado
Jul 3, 2025