Mar. 1: Marriage penalties and the Childhood Budget. Could families have to repay the government for past therapy?

Let me walk you through a potential scenario.

Take a single parent, with a child on the spectrum (and possibly other children as well), who earns $54,500/yr. Let’s suppose that somehow the parent manages to get the child diagnosed and into the new OAP by the child’s 2nd birthday.

The Childhood Budget would be set at the maximum, $140,000.

Now let’s suppose that the parent spends $20,000 for “behavioural services” (which we’re still not entirely clear what those include) each year for the child between the ages of 2–5. This looks to be allowable under the Childhood Budget rules.

By the time the child turns 6, $80,000 (4 yrs * $20,000/yr) of the Childhood Budget has been spent.

Now let’s suppose the parent gets married just before the child turns 6, to someone earning $100,000/yr. Their combined family income is now $154,500. Under the rules of the program, the Childhood Budget is now re-assessed, and the budget is set at 49% of max funding.

If we do the math, 49% of $140,000 is $68,600, so the new Childhood Budget is $68,600. But the family has already spent $80,000! The amount of funding remaining is in a deficit position of $11,400.

The child’s funding would now be completely used up by age 6, thanks to how the rules of the program treat the income change caused by the marriage. The $60,000 that had been available for the child’s therapy between ages 6 through 17 would no longer be available, and the family would have to pay for any additional therapy out of their own pockets. Note: This problem extends beyond marriages — it can be caused by income increases that occur for any reason, including a parent returning to the workforce.

My question: Would the family also be required to pay back the $11,400?