The recent budget legislation proposed by the Carney government includes a provision that legal representatives for veterans argue is an attempt to conceal a longstanding mistake that resulted in veterans being overcharged for long-term care. Malcolm Ruby, a partner at Gowling WLG and co-counsel in a potential class-action lawsuit, expressed that rather than acknowledging the error, the government is seeking to alter regulations retroactively. The amendment, tucked within the 637-page budget implementation act unveiled on Tuesday, aims to clarify the calculation method for veterans’ long-term care expenses and retroactively apply this formula. This move is viewed by the lawyers involved in the class action as an effort to legitimize a costly federal error.
In a report by CBC News in October 2024, it was revealed that a misinterpretation of federal law led to miscalculations in what veterans should pay for long-term care under the Veterans Affairs Department. Despite internal awareness of the issue within the department, no action was taken. While veterans in the department’s long-term care program are generally only responsible for accommodation and meal costs, the calculation was supposed to be based on the lowest room and board expenses in the least expensive province, including territories. However, CBC News analysis showed that territories were excluded from the calculation, despite the Northwest Territories offering the lowest long-term care rates. The analysis suggested veterans may have been overcharged by approximately $3,130 in the previous year alone.
This discovery prompted legal action by Ruby and co-counsel Michel Drapeau, alleging that veterans have been overcharged since at least 1998 due to the incorrect formula application. The proposed amendment by the government to define “province” as excluding territories retroactively could potentially eliminate the obligation to reimburse overpaid veterans and halt the ongoing class action. Ruby criticized this move as an attempt to evade accountability for errors made with veterans’ care expenses. Finance Minister François-Philippe Champagne defended the amendments as clarifications to benefit calculation methods, emphasizing the government’s commitment to supporting veterans. Drapeau, a retired colonel with over 30 years of service, denounced the retroactive legal changes affecting benefits as unprecedented and unacceptable.
The bill containing the proposed amendments will need to pass through Parliament for implementation.