In Canada we have a progressive income tax structure, meaning we take more tax dollars from high-income earners than we do from low-income earners. Retirement and the possibility of LTC don't appear suddenly for most -- we have decades to prepare. We also live in a society where we have a minimum standard for a lot of things, including healthcare, LTC, and education.
My feeling is both should have greater options for those who can afford them. I realize there is a social argument against this and I'm not advocating lowering the bar from where it is, but for opening private options that allow choices for those who choose to work for them. LTC has some options, however the current system is not progressive in terms pricing, everyone pays the same and the system doesn't have the capacity to meet demands. We could simply dump a few billion more into the system, we could also get more creative.
In Norway, LTC costs are usually progressive, users pay 0 to 75% of their income up, with a cap on the actual costs. In Ontario it's $70-90/day, with actual costs being somewhere around $225/day regardless of income. I think it would be fair that wealthier people pay more. Re-jiggin would mean someone with $35K or less would see no changes. People that make more would pay more - capping at $225/day for those making $110K or more retirement income. I don't know how much this would change the financing model, but I'm sure it would make more people consider options like home care and it would pump some dollars back into the system - both could have an easing impact on the current system.
Another thing I'd do is look at increasing LTC facility densities. Right now ON averages 95 people per facility, there have to be efficiencies in raising that number to 200 or 300 - so make that a requirement for new urban LTC facilities. The facility near me was originally 75 beds in 18000sq', they rebuilt it 15 years ago to 65,000sq' and 95 beds.
Finally, if I were King, I'd provide families that provide LTC at home 75% of the per-patient subsidy (after deducting co-pay) they currently offer LTC homes. That would be about $2400/mo -- I'll bet a lot of families could muster the resources to look after grampa if they were getting $2500/mo. This would ease demand AND reduce costs.