The province will raise rates for most seniors in residential care to generate an extra $54 million a year of revenue.

Health Service Minister Kevin Falcon said the new rate structure would be more equitable, delivering a rate cut for the 25 per cent of seniors in care with the lowest incomes.

However, the other 75 per cent face significant hikes, effective January.

A senior with a before-tax income of $22,000 a year will pay $1,392 a month, up $163 from $1,229 now.

A senior in the low-income category — earning $14,034 a year — will pay $894 a month, a $46 cut from $940 now.

“The new residential care rate structure will better protect low-income residential care clients,” Falcon said. “It’s fair and it’s the right thing to do.”

Under the new system, all seniors are charged a flat rate of 80 per cent of after-tax income for room-and-board costs.

There are hardship provisions to ensure no senior needing residential care is turned away, he said, adding the new formula means all seniors are left with at least $275 per month for personal expenses.

The extra money raised must go to directly improve care, Falcon said.

David Hurford, spokesman for the B.C. Care Providers Association representing private operators, wants more assurances the cash won’t simply be used to cut British Columbia’s big deficit.

“They need to return that to front-line seniors care. As opposed to going back into the black hole of general revenue.”

Hurford contends government-run care homes get more funding per patient than privately run facilities, and that much could be done to cut costs without touching rates.

NDP health critic Adrian Dix noted the increase works out to nearly $2,000 a year for the bulk of seniors in government-subsidized care.

“It’s a massive increase,” he said. “If you’re making $22,000 a year, what Kevin Falcon is saying is you’re rich and he’s going to charge you $2,000 a year more.”

Dix called it a series of financial hits to seniors ranging from the HST to higher Pharmacare fees.