Vol. 143, No. 46 — November 14, 2009

Regulations Amending the Veterans Health Care Regulations and the Veterans Burial Regulations, 2005

Statutory authority

Department of Veterans Affairs Act

Sponsoring department

Department of Veterans Affairs

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issue

In 1995, through a budgetary review process, the War Veterans Allowance Act (WVA Act) was amended so that only allied veterans and survivors domiciled in Canada on enlistment or at any time during the war were eligible to apply for WVA and to receive associated benefits and services. This measure meant that access to benefits was removed for first-time applicants who came to Canada after the wartime period and who applied after the 1995 changes. These changes clearly impacted Second World War allied veterans who moved to Canada after the war. The 1995 changes to the WVA Act were intended to return the WVA program to its original intent, which was to provide income support to Canadian veterans, and those allied veterans who had been living in Canada before or at the time of their war service. For compassionate reasons, allied veterans who received benefits prior to the 1995 legislative change were protected (grandfathered).

In the fall of 2003, eligibility for VAC’s Long-Term Care (LTC) program was restored for Second World War Allied Veterans who moved to Canada after the war and had at least 10 years post-war Canadian residency. This was accomplished through amendments to the Veterans Health Care Regulations. These 2003 amendments enabled allied veterans who meet the post-war residency criteria to access LTC in a community facility, as well as necessary treatment benefits. Also, if the allied veteran’s health deteriorates to the point where his/her needs cannot adequately be met in the community facility, VAC will provide for care in a contract bed or departmental facility, based on availability.

The current proposal responds to this Government’s commitment to veterans to restore the War veterans Allowance for allied veterans of the Second World War and their family members (primarily survivors) who have lived in Canada for at least 10 years since the end of that war and to extend eligibility to allied veterans of the Korean War who meet either pre- or post-war residency requirements and their family members (primarily survivors).

Five risks have been identified in achieving the objective of this proposal:

1. VAC may lack the capacity to respond to the initial increased service demand from allied veterans and their families;

2. Complex policies and business processes related to complex eligibility criteria may result in delayed payment to eligible allied veterans or their family members;

3. External stakeholders may pressure VAC to extend eligibility to additional groups;

4. The period of retroactivity may not meet the expectations of allied veterans and their families; and

5. VAC may be unable to ensure that all eligible allied veterans receive the benefits to which they are entitled.

While the first two risks are assessed as minor, the other three are assessed as moderate. Those assessed as moderate will be addressed in our communications strategy. VAC’s mitigation strategy will largely be accomplished through a comprehensive communications strategy, e.g. further briefings with veterans’ organizations, visits to potential applicants, news releases and information provided to target groups through publications for veterans, and through VAC’s external Web site.

Objectives

The objectives of the proposed regulatory amendments are to provide low-income allied veterans and their eligible family or survivors and their dependents with the same benefits as other clients who are eligible for the War Veterans Allowance and associated health and assistance programs for funeral and burial assistance (on behalf of the veteran client), and for the Assistance Fund. Allied veterans’ access to VAC’s health care program (treatment benefits, VIP and LTC) is consistent with the approach for other VAC clients, who do not have access to such a program through this province or territory of residence and where a health care need exists. Access to the health care program is similar to that available to other low-income veterans.

Description

The War Veterans Allowance is a form of financial assistance that ensures qualified persons receive a guaranteed monthly income. WVA eligibility is based on clients meeting war service, residency, income, and/or age/criteria (health care need is not a separate criterion). Once clients have access to WVA, they become eligible to apply for associated health and assistance programs: Assistance Fund, treatment benefits, Veterans Independence Program (VIP), and Long-Term Care (LTC). Low-income allied veterans may also receive Funeral and Burial Program benefits.

At present, VAC provides benefits to allied veterans who served during the Second World War and were domiciled in Canada before the war or at the time of their enlistment during the war. This is known as “pre-war domicile.” This proposal would provide access to WVA and associated health and assistance programs for allied veterans of the Second World War and the Korean War who moved to Canada after those wars and meet the 10 years post-war Canadian residency requirements. Eligibility is also extended to those allied veterans of the Korean War who meet pre-war residency requirements. In all cases, allied veterans and their eligible family members, primarily survivors, must still be resident in Canada. This proposal will ensure that these groups of low-income war service veterans have access to needed financial resources and health care services. It would also provide eligible family members (primarily their survivors) or dependents access to certain programs, according to current authorities.

In order to achieve the objective of this proposal, two sets of regulations require amendments.

1. Veterans Health Care Regulations

The VAC health care program consists of three main components: Treatment Benefits, VIP, and LTC. Treatment benefits provide a full complement of benefits which range from hearing aids, medical supplies and special equipment, to prescription drugs, and dental and vision care. The VIP, a national home care program, assists eligible clients to remain healthy and independent in their own homes or communities by providing them with personal care services, housekeeping, grounds maintenance, access to nutritious meals, home adaptations, and other support, based on need. LTC provides facility care for those who are no longer able to remain in their own home.

2. Veterans Burial Regulations, 2005

VAC provides funeral and burial assistance to qualified individuals (as identified in the Veterans Burial Regulations, 2005) to allow for a dignified funeral and burial where this is not otherwise feasible. The program provides families or estates of eligible war service veterans with financial assistance to help cover the costs of the funeral and burial on behalf of the veteran. Veterans whose death is linked to a pensioned condition, or who have insufficient funds in their estates, may be eligible for assistance. Pursuant to an agreement with VAC, The Last Post Fund Corporation, an independent non-profit organization, administers the program.

Other benefits

The Assistance Fund will also be available to these new groups of clients and their eligible family members. This program provides financial assistance in the form of a small grant (up to $1,000 per year) to a WVA recipient (eligible client or family member) residing in Canada, for an emergency or unexpected contingency that affects health and/or safety and for which there are no other resources available. The Assistance Fund provides grants for such things as shelter, clothing, health items (e.g. hearing aids, dentures, eyeglasses), and essential appliances (e.g. refrigerator, stove).

In addition to the changes brought about by Bill C-33 — An Act to amend the War Veterans Allowance Act — which amended eligibility for the War Veterans Allowance for allied veterans and their families, this regulatory proposal will restore associated health and assistance programs (Assistance Fund, Funeral and Burial, VIP, and Treatment Benefits) to low-income allied veterans who served during the Second World War, have at least 10 years of post-war Canadian residency, and still reside in Canada. It also extends the associated health and assistance programs (Assistance Fund, Funeral and Burial, VIP, Treatment Benefits and LTC — community beds only) to low-income allied veterans who served during the Korean War, meet either pre-war or post-war residency requirements and still reside in Canada.

The proposed amendments to the Veterans Health Care Regulations and the Veterans Burial Regulations, 2005 support Bill C-33 through the amendments to the eligibility criteria so that the newly eligible clients and their eligible family members may receive benefits and services available to them.

Regulatory and non-regulatory options considered

As a result of Bill C-33 and to achieve the desired program changes for allied veterans and their families, the Veterans Health Care Regulations and the Veterans Burial Regulations, 2005 must be amended before the coming-into-force date of January 1, 2010. No instrument other than the proposed regulations will satisfy these requirements, because it is exclusively through the above-cited regulations that eligible clients and their family members are defined, and benefits and programs are prescribed, as are the service and program criteria which apply.

Without these proposed regulatory amendments, some low-income allied veterans of the Second World War and the Korean War and their eligible family members will continue to be precluded from accessing VAC programs and the support these programs can provide, which is particularly important for these older, traditional veterans.

Although these new groups of clients will be subject to and able to access benefits under the Veterans Allowance Regulations and the Assistance Fund (W.V.A. and C.W.A.) Regulations, these cited regulations do not require amendments.

Benefits and costs

The potential costs and benefits of the proposed Regulations were identified through a review of the literature, internal program information, and internal departmental discussions. Where possible, quantified estimates of costs and benefits are provided over a 10-year time horizon from 2010 to 2019. All dollar values are expressed in constant 2009 dollars.

Costs

Government of Canada—VAC

All direct costs will be incurred by the Government of Canada. The total government cost for the regulatory amendments is estimated at about $159 million in constant 2009 dollar terms over 10 years at an annual average of $15.9 million. The government cost includes program costs of $146 million and an implementation cost of $13.3 million. The cost is, however, representing only 1% of Veteran Affairs Canada’s expenditures over the first five years.

The estimated ten-year program cost projections for the allied veterans proposed regulations, with a coming-into-force date of January 1, 2010, would be approximately $146 million with a present value of $113.2 million at an 8% discount rate.

Other stakeholders that may be negatively affected by the proposed Regulations are other VAC clients, veterans’ organizations and Canadians. Such costs are, however, indirect, minimal and non-quantifiable.

Other VAC Clients

The costs associated with other VAC clients for the proposed Regulations would be associated with the perception of unfairness from other war service veteran clients that are not entitled to the same level of benefits. These costs are minimal and cannot be quantified or monetized.

Veterans’ organizations

Veterans’ organizations would perceive the proposed Regulations as unfair to excluded veterans. These impacts are qualitative and cannot be monetized.

Other Canadians

The impacts on the other Canadians resulting from the proposed Regulations would be the cost for the delivery of these programs. The amount of taxes, however, should be minimal as it is only 1% of VAC’s annual operating budget.

Benefits

Allied veterans and their families

The main beneficiaries of the proposed Regulations would be low-income allied veterans of the Second World War with post-war residency and of the Korean War with pre- and post-war residency in Canada and their survivors. Based on the estimated intake into the WVA over the next 10 years, it is expected that cumulatively 300 additional allied veterans will receive income support benefits (WVA, Assistance Fund, and Funeral and Burial Program). It is also estimated that an additional 3 600 allied veterans will receive health care benefits over the next 10 years (VIP, treatment and LTC). VAC also estimates that through this initiative, about 1 000 survivors will receive benefits over the 10-year period. It is assumed that the majority of clients will come forward in the first two years of the initiative. Additional intake in subsequent years will be minimal as allied veterans are aging and their number is declining over time.

It is estimated that eligible allied veterans and their families will be receiving $7.9 million and $36.6 million in 2009 constant dollars in the first and second years of implementation, respectively. As the number of eligible allied veterans decreases over time, the total amount received is also estimated to decrease over time to $3.3 million in 2009 constant dollars in the tenth year of implementation.

The benefits associated with the proposed Regulations for the allied veterans would be increased income and increased access to health care benefits. As a result, allied veterans will experience improved health, leading to an improved quality of life and improved standard of living.

Provincial and territorial governments

The benefits associated with the proposed Regulations for provincial and territorial governments would be reduced expenditures, through income support programs, that would have been made to these low-income allied veterans and their families.

Demographic information indicates that of the current VAC allied veteran clients, 51.6% are located in Ontario, 9.3% in Quebec, 35.5% in Western Canada and 3.6% in Atlantic Canada. Approximately 33% of allied veteran clients are also located in three major cities: Toronto, Montréal and Vancouver. It is therefore expected that most of the impacts would be localized to the provinces of Ontario, Quebec and British Columbia.

Other stakeholder groups that may be impacted positively are veterans organizations, Last Post Fund, third party contractors, health care and service providers and other Canadians.

Veterans’ organizations

The benefit associated with the proposed Regulations for the veterans’ organizations would be the perception of fairness for the inclusion of eligible allied veterans in the WVA Act. This impact is qualitative and very minimal.

Last Post Fund

The benefits associated with the proposed Regulations for the Last Post Fund would be increased funding for providing services to a new group of clients, which would help to sustain the Last Post Fund program. The benefits would be minimal, as the proposed Regulations will lead to an increment of only 30 Last Post Fund clients annually, and will provide just about $160,000 in additional funding over the 10-year forecast period.

Third party contractor

The benefit associated with the proposed Regulations for third party contractors would be increased revenue for providing services to a new group of clients. Health care payments would be processed through a third party contractor. However, due to the small number of eligible allied veterans, the benefits to third party contractors will be minimal and are estimated at $2.9 million in 2009 constant dollars over the 10-year period.

Health care and service providers

Health care and service providers would also be positively impacted through increased revenues for providing services to a new client group. This impact would be minimal and localized to the Toronto, Montréal and Vancouver areas.

Other Canadians

The benefit associated with the proposed Regulations for other Canadians would be the perception of supporting our veterans. This benefit is qualitative and would have minimal impact.

Summary of benefit and costs

The estimates of benefits and costs are summarized in the table below. Whereas the table indicates a net present cost of $7.4 million, there are several other benefits that could not be quantified, such as improved standard of living for allied veterans and their families and reduced program costs for provincial and territorial governments.

Government Programs	Base year 2010	Final year 2019	Total	Annual average
A. Quantified impacts ($M)
Benefits
Allied veterans and families	7.93	3.34	113.22	14.60
Last Post Fund	0.02	0.01	0.12	0.16
Third party contractor	0.56	0.08	2.94	0.374
Costs
GC — VAC Program	7.93	3.34	113.22	14.60
GC — VAC Admin. $	2.09	0.28	10.47	1.33
Net present value	(7.42)
Group	Measure	Comment
B. Quantifiable impacts (non-$M)
Benefits
Allied veterans	Improved quality of life	Not monetized in this report
Families of allied veterans	Improved quality of life	Not monetized in this report
Health/service providers	Increased revenue	Not monetized in this report
Provincial governments	Decreased program payments	Not monetized in this report
Group	Impact
C. Qualitative impacts
Benefits
Veterans’ organizations	This group will have the perception of fairness for the inclusion of allied veterans in the WVA Act.
Other Canadians	This group will feel it is important to recognize Canada’s veterans and will support any enrichment of benefits and services to veterans.
Other Canadians	This group will benefit from additional employment opportunities with third party providers.
Costs
Veterans’ organizations	This group will have the perception of unfairness for not including other veteran groups that are currently excluded.
Other VAC clients	This group will have the perception of unfairness from other war service veterans that are entitled to the same level of benefits.

Consultation

A consultation period will follow the publication of the regulatory proposal in the Canada Gazette, Part I. Representations sent to the Minister of Veterans Affairs will be taken into consideration in the preparation of the final regulatory proposal.

Implementation, enforcement and service standards

Approximately 3 600 clients and up to 1 000 eligible family members, primarily survivors, are expected to qualify for benefits following the coming-into-force date of January 1, 2010.

A variety of communication products and formats will be used to inform newly eligible clients and their family members of these changes. These will demonstrate in a proactive manner, that the Government of Canada is responding to the needs of veterans and their families. In overview, these will be in the form of

• National news releases;
• Salute, a quarterly, bilingual newspaper produced by Veterans Affairs Canada for clients which provides information to veterans and their families on departmental programs, services, policies and initiatives which affect them and which may be of interest to them;
• Stakeholder publications, such as the Legion Magazine, allied veterans’ organizations’ newsletters;
• National Pensioners (superannuates) newsletters; and
• Senior Citizens Federation newsletter.

Stakeholder outreach will take the form of face-to-face briefings with key interested veterans’ organizations, including the Royal Canadian Legion and those specific to allied veterans. The messages and dissemination of information will be sustained through the VAC Web site and VAC stakeholder publications.

The proposed regulatory amendments will not impact the manner in which the different programs and their respective activities are carried out. The potential increased number of applications received as a result of Bill C-33 will be absorbed within existing resources. It is not anticipated that broadening the client eligibility for these programs will have an impact on legislative and/or regulatory compliance. Compliance reviews of these programs will continue to be conducted on a cyclical basis in accordance with the performance measurement plans.

Veterans Affairs Canada updated its service standards in April of 2009. These standards are posted on the VAC external Web site. Standards currently exist for all programs under this initiative except for the Funeral and Burial Program which will be added for the 2010–2011 fiscal year. The changes to come due to this proposal should still allow service standards to be maintained close to current average processing times. Review processes are in place within each program for clients or family members who are not satisfied with a decision.

The service standard and performance measurement data can be analysed nationally, per region, and per district. Consistency and quality of decisions across regions can also be monitored.

Performance measurement and evaluation

Benefits being made available to these new client groups already exist and are housed in appropriate legislation and regulation. The methods for measuring a successful outcome are, therefore, those already established for each of the existing programs.

Performance measurement plans have been established for all programs related to this initiative. Data will be available for analysis and subsequent review of the results by managers. Regular monitoring of the work performed is conducted to ensure compliance with business processes and policies. This includes the review and quality control of inputs into VAC’s database systems and client records. Of greatest significance are the issues of relevance and performance relative to program outcomes. In accordance with Treasury Board policy, evaluations will be conducted on all direct program spending every five years and will focus on these core issues of program relevance and performance.

Each program has its own strategic outcome:

• WVA, Health Care (including treatment benefits, VIP, and LTC): Eligible veterans and other clients achieve their optimum level of well being through programs and services which support their care, treatment, independence and re-establishment.
• Funeral and Burial: Canadians remember and demonstrate their recognition of all those who served Canada’s effort during war, military conflict, and peace.

Contact

Danielle Sonier
Acting Chief
Legislation (Regulations)
Cabinet and Legislative Affairs
Departmental Secretariat and Policy Division
Veterans Affairs Canada
Telephone: 902-566-8632

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 5 (see footnote a) of the Department of Veterans Affairs Act (see footnote b), proposes to make the annexed Regulations Amending the Veterans Health Care Regulations and the Veterans Burial Regulations, 2005.

Interested persons may make representations concerning the proposed Regulations within 15 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Danielle Sonier, Acting Chief, Legislation (Regulations), Veterans Affairs Canada, Cabinet and Legislative Affairs, Room 304 Daniel J. MacDonald Building, P.O. BOX 7700, Charlottetown, PE C1A 8M9 (tel: 902-566-8632; fax: 902-566-8172; email: danielle.sonier@vac-acc.gc.ca).

Ottawa, November 5, 2009

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE VETERANS HEALTH CARE REGULATIONS AND THE VETERANS BURIAL REGULATIONS, 2005

VETERANS HEALTH CARE REGULATIONS

1. (1) Paragraph (e) of the definition “veteran” in section 2 of the Veterans Health Care Regulations (see footnote 1) is replaced by the following:

(e) an allied veteran described in subsection 37(4), (4.1) or (4.2) of the War Veterans Allowance Act,

(2) The definition “overseas service veteran” in section 2 of the Regulations is amended by striking out “and” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and adding the following after paragraph (c):

(d) an allied veteran described in paragraphs 37(4)(c.1) and (d.1) or subsection 37(4.2) of the War Veterans Allowance Act; (ancien combattant ayant servi outre-mer)

2. Section 16 of the Regulations is amended by adding the following after subsection (1):

(1.1) Despite subsection (1), the primary caregiver of a client who died or began residing in a health care facility during the period beginning on October 14, 2008 and ending on December 31, 2009 is entitled to the services in accordance with subsection (1) that the client would have been entitled to receive if paragraph (d) of the definition “overseas service veteran” and paragraph (e) of the definition “veteran” in section 2 had come into force on October 14, 2008 provided that

(a) the client is an allied veteran described in paragraphs 37(4)(c.1) and (d.1) or subsection 37(4.1) or (4.2) of the War Veterans Allowance Act;

(b) the client is not an allied veteran described in paragraph (g) of the definition “veteran” in section 2; and

(c) the primary caregiver applies to the Minister for the services no later than December 31, 2010.

3. Section 21 of the Regulations is amended by adding the following after subsection (4):

(5) Despite subsection (1), an income-qualified veteran or an overseas service veteran, who is an allied veteran described in paragraphs 37(4)(c.1) and (d.1) or subsection 37(4.1) or (4.2) of the War Veterans Allowance Act and who is not an allied veteran described in paragraph (g) of the definition “veteran” in section 2, is not eligible to receive the care referred to in subsection (1).

VETERANS BURIAL REGULATIONS, 2005

4. Paragraph (j) of the definition “veteran” in section 1 of the Veterans Burial Regulations, 2005 (see footnote 2) is replaced by the following:

(j) an allied veteran within the meaning of subsection 37(4), (4.1) or (4.2) of the War Veterans Allowance Act. (ancien combattant)

COMING INTO FORCE

5. These Regulations come into force on January 1, 2010.

[46-1-o]

Footnote a
 S.C. 2005, c. 21, s. 100

Footnote b
 R.S., c. V-1; S.C. 2000, c. 34, par. 95(a)

Footnote 1
 SOR/90-594

Footnote 2
 SOR/2005-200

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