Veterans may have been paying too much for long-term care for years due to federal errors

A misinterpretation of federal rules may have caused tens of thousands of Canadian veterans to pay too much for long-term care since at least 2005.

Veterans Affairs Canada (VAC) says it is investigating – and some lawyers have filed a new class action lawsuit – after an analysis by CBC News revealed a possible error in the way the department calculates what veterans pay for long-term care .

“It’s just kind of a slap in the face to these veterans who gave everything they had during World War II, the Korean War … only to not be properly cared for, and not to be cared for the way Parliament does. ” wanted them to be that way,” says retired Colonel Michel Drapeau, who is now a lawyer in Ottawa.

With some exceptions, veterans in the department’s long-term care program are only required to cover the costs of their lodging and meals. These costs are intended to be set at a certain level equal to the lowest room and board costs in the least expensive province.

Figures from Veterans Affairs Canada show that veterans in the program are paying the maximum amount this year $1,236.90 per month for long-term care – about equal to the lowest available cost in Manitoba.

But the federal law that determines how other laws are interpreted defines ‘province’ as ‘province or territory’ – and long-term care costs are significantly cheaper in the Northwest Territories.

The long-term care rate in the Northwest Territories for this year is $976 – meaning veterans could be overbilled by more than $260 per month, or $3,130 per year.

Figures obtained by CBC News from provinces, territories and VAC show that some veterans in the long-term care program have been paying more than the lowest cost in the lowest province or territory (which has consistently been the Northwest Territories) for at least 19 years. .

Drapeau said publicly available information indicates only a small number of veterans are currently in long-term care — about 1,500. Ten years ago, he said, there were many more of them in health care — between 6,000 and 14,000.

“We’re not talking about millionaires here,” he said, adding that many veterans have pensions. “I think the average Canadian would say, ‘Wow, that’s $3,000 a year. It’s significant.'”

Drapeau’s firm and four other firms represented 330,000 CAF and RCMP veterans in a recent class action about pension and disability benefits. These firms successfully argued that Veterans Affairs Canada had made a similar legal error in calculating monthly disability benefits.

In that caseManuge v. Canada, the court concluded that the federal government had understated a pension adjustment based on the income tax rate for the province with the lowest combined federal/provincial rate, and failed to take into account that Nunavut had the lowest rate.

The settlement ordered the federal government to reimburse class action members the $528.5 million they lost because of the error, plus millions of dollars in interest dating back to 2003.

Two sources with ties to Veterans Affairs Canada told CBC News that the issue of veterans being overcharged for long-term care had been brought to attention internally.

Both sources say the department has known about this discrepancy for years. One source said whether the matter would become public was a matter of “when, not if.”

CBC News asked the department why territories are not included in the calculation of long-term care costs for veterans, and when VAC was first informed of the issue. The department responded with a media statement.

“At Veterans Affairs Canada, we work to ensure that all veterans have equal access to our programs and services. We have been asked to investigate this matter,” the statement said.

Veterans Affairs Secretary Ginette Petitpas Taylor’s office declined an interview request.

“Veterans Affairs Canada has one job, which is to support these veterans and their families, and they fail miserably every time,” said Sandra Goodwin, spokesperson for the Veterans Legal Assistance Foundation, a charity created to provide Canadian veterans with of financing to obtain legal advice.

“Veterans and their families should not have to use lawyers, they should not have to access the legal system to get the benefits they have earned.”

Class action application filed

After being asked about the issue by CBC News, some lawyers involved in the Manuge class action said they were going to file another class action filing, alleging VAC is overcharging veterans for long-term care.

Drapeau said he believes the government made the same mistake by not taking the territorial rates into account.

“From what I can see, we are dealing with something similar again this time, where a rate is not being applied correctly,” he said. “Essentially it’s the same problem and the same principle.”

A claim was filed in federal court on behalf of the estate of Gordon Allan on Monday. The claim states that the World War II veteran died in 2022 after being admitted to a long-term care facility in 2019 and that he paid the maximum cost of lodging and meals for his care.

He took part in the Normandy invasion in June 1944 and was discharged from the army in 1946, the statement of claim said.

The claim was filed by Drapeau and Gowling WLG’s firm.