Understanding the cost-sharing model
In Ontario, long-term care costs are shared between the government and the resident. The provincial government covers the cost of healthcare services, such as 24-hour nursing and personal care, therapies, and medication administration. This ensures that residents receive necessary clinical care regardless of their financial situation. Residents are responsible for an accommodation fee, which covers room and board, including meals, housekeeping, and laundry. This fee is standardized across the province based on the type of room.
The resident's portion: accommodation fees explained
Accommodation fees vary depending on the type of room. As of July 1, 2025, there are standardized maximum monthly rates for long-stay residents in basic, semi-private, and private rooms. Basic rooms are typically ward-style with multiple residents, while semi-private rooms are shared with one person, and private rooms are for single residents. Private rooms are the most expensive, and basic rooms are the most affordable. Some long-term care homes may also charge extra for optional services like cable or internet.
The long-term care rate reduction program
The Ontario government offers a Rate Reduction Program to help low-income residents afford basic room accommodation fees. This subsidy is based on income and does not consider assets. It only applies to basic rooms, not semi-private or private. To be eligible, residents must be receiving all other applicable income benefits, such as Old Age Security and the Guaranteed Income Supplement. An annual re-application is required to continue receiving the reduction.
How to apply for long-term care in Ontario
To apply for a government-subsidized long-term care bed, you must go through your local Ontario Health atHome, previously known as Home and Community Care Support Services. The process includes contacting them (310-2222 or via their website), having a care coordinator assess your needs and eligibility, completing a form listing preferred homes (up to five), and waiting for a placement offer. Wait times can vary.
Long-term care vs. private retirement residences
The funding and costs differ between government-subsidized long-term care homes and private retirement residences:
| Feature | Government-Subsidized Long-Term Care | Private Retirement Residences |
|---|---|---|
| Funding | Cost-shared by the government (care) and resident (accommodation). | Privately funded by the resident; fees not government-regulated. |
| Cost | Standardized accommodation rates set by the province; subsidies for low-income residents. | Variable costs set by the operator; generally higher than LTC homes. |
| Level of Care | For high care needs with 24/7 nursing and supervision. | Varies (independent to assisted living); limited and often extra medical support. |
| Application | Assessed and placed through Ontario Health atHome; waitlists possible. | Direct application to the residence; no external assessment or government waitlist. |
Government investments in the long-term care sector
The Ontario government invests significantly in long-term care, beyond covering individual resident care costs. Programs like the Long-Term Care Capital Funding Program (CFP) support building new homes and redeveloping existing ones to modern standards and increasing capacity. Initiatives such as the Local Priorities Fund help homes get specialized equipment and staff training for residents with complex needs. More information is available on the official Ontario Ministry of Long-Term Care website.
Conclusion: Navigating the financials of long-term care
While the Ontario government funds the necessary clinical care in long-term care homes, residents are responsible for accommodation costs. The system uses a cost-sharing model, with subsidies available for eligible low-income residents in basic rooms to ensure access to care. Understanding this structure is key to planning for long-term care needs in Ontario.
