Veterans Ombudsman Releases Report Address Additional Dependent Care Reimbursement System

Canada’s Veterans Ombudsman, Col. (ret’d) Nishika Jardine, is urging the federal government to address unfair rules in the Additional Dependent Care reimbursement system, which allows Veterans the chance to cover the costs of participating in the Veterans Affairs Canada (VAC), Rehabilitation Program.

Released on February 26, 2025, the report from the Ombud this week found that current reimbursement rules create inequities, leaving some Veterans with higher out-of-pocket costs than others, depending on the type of rehabilitation service they access. The report warns that these limitations could prevent Veterans from receiving the care they need.

“VAC needs the flexibility to support all Veterans, particularly as family structures evolve alongside societal changes,” said Ombud Jardine in a statement, adding, “No Veteran should have to choose between paying the extra care cost out of pocket or foregoing treatment.”

Key Findings: Reform Needed

The report is the result of a review launched after the Ombud received complaints from a Veteran about Additional Dependent Care reimbursement.

The Ombud’s report identified three major concerns with the Additional Dependant Care reimbursement policy:

• unequal treatment based on rehabilitation type;
• outdated maximum rates and
• disproportionate impact on certain veterans.

According to the report, Veterans attending training services may receive reimbursement beyond the maximum rate. In contrast, those receiving non-training services, such as counselling or physiotherapy, do not have the same flexibility. It also notes that the restrictions typically impact single parents, women and those with multiple dependents.

“Overall, we found that the Department’s lack of authority to exceed the maximum rate for Additional Dependant Care for clients attending rehabilitation services other than training is unfair to those clients because there is no flexibility to meet their individual needs. We are also concerned that the maximum rates for Additional Dependant Care, which were set out in the regulations in 2006 without any provisions to adjust them, may not have kept up with the cost of dependant care. Our recommendations seek to resolve these systemic fairness issues,” reads the report.

Recommendations

Jardine has made two distinct recommendations to correct the issues. Firstly, she recommends regulatory amendments. This would ensure that the Minister of Veterans Affairs revises the Veterans’ well-being regulations to allow discretion in exceeding maximum reimbursement rates for all rehabilitation services.

Secondly, the Ombudsman has recommended cost-of-living adjustments, which means the rate is updated regularly to reflect inflation.

Role of the Veterans Ombud

The Office of the Veterans Ombud serves as an independent voice for fairness, investigating complaints and challenging Veterans Affairs Canada policies where systemic issues are found. The report underscores the need for a more inclusive and adaptable approach to supporting Veterans in their rehabilitation journey.

As the government reviews the recommendations, Veterans, advocacy groups, and policymakers will be watching closely to see whether changes are made to ensure all Veterans receive the support they need without financial hardship.