Major reforms are kicking in next month and there will be a big shift for those wanting to stay at home as well as for self-funded retirees in aged care facilities. (Source: Getty)
Australia’s aged care system is getting a massive overhaul next month and the government is introducing a new Support at Home program. It’s designed to help Aussies stay in their homes longer, rather than having to be placed in an aged care facility.
Services Australia has revealed the financial support for those choosing in-home care through Centrelink will become simpler as a result of the new Aged Care Act. The changes are set to come in on November 1.
“Under the Support at Home program, you’ll only pay contributions on the services you receive, and you’ll no longer pay a Basic Daily Fee,” the government body said.
“We’ll determine how much you need to contribute towards your care using a means assessment.”
Those on a Home Care Package will be automatically moved onto the Support at Home program at the start of next month.
They will receive a letter in November that will provide information about the new program.
“Changes to means tested residential aged care fees will ensure people can contribute to their non-clinical care and everyday living costs if they can afford to,” Services Australia said.
“If you’re already in residential aged care, the types of fees you pay won’t change unless you ask to move to the new fee arrangements.”
The government said the Support at Home program provides upfront payments to help older Aussies install assistive technology at their residences to help them maintain their independence.
Do you have a story? Email stew.perrie@yahooinc.com
People wanting to jump onto the Support at Home program will have to undergo an assessment to see if they’re eligible.
According to the government, a person could be eligible if they have:
noticed a change in what you can do or remember
been diagnosed with a medical condition or reduced mobility
experienced a change in family care arrangements, or
experienced a recent fall or hospital admission
After an assessment has been done, a successful applicant will receive a summary of their aged care needs and goals, an associated quarterly budget to address those needs, and an approved list of services required.
“This system aims to ensure equitable and efficient allocation of funding based on standardised criteria. The higher the priority level, the less time an older person will wait to begin receiving their approved funding,” the government said.
Story Continues
Support at Home providers will set their own prices for services, however from July 1 next year, government-set price caps will be introduced.
Prices will have to include the entire cost of delivering a service, and providers must give their participants an itemised monthly statement.
Services Australia’s My Aged Care system also has staff available to help Aussies with general information about care in their home, after-hospital care, respite care, moving into an aged care home, and short-term restorative care.
Health Minister Mark Butler said back in July that the “once-in-a-generation” aged care reforms kicking in next month are “incredibly ambitious”.
While there will be more support for those who want to remain at home, self-funded retirees in aged care could end up having to fork out a lot more cash.
According to Clarity Aged Care Advisors, the additional cost could be $20,000 to $50,000 per year.
This is due to changes being made to:
Refundable Accommodation Deposits (RADs)
Daily Accommodation Payments (DAPs)
Hotelling Supplement
Higher Everyday Living Fee (HELF)
Non-Clinical Care Contribution (NCCC)
Older Australians could be forking out tens of thousands of dollars more per year under changes to aged care. (Source: Getty) · BeyondImages via Getty Images
In the past, RADs have been fully refunded when a resident leaves care. However, aged care providers will retain 2 per cent of the RAD per year for up to five years. Interest rates on RADs are also locked in when residents are admitted to care, but this will soon be indexed to inflation twice a year.
The hotelling supplement helps providers meet the everyday cost living services like catering, cleaning and laundry.
This daily cost was previously covered by the government, but it will soon be means-tested and residents might have to contribute towards it based on their financial circumstances. The maximum will be $22.15 per day.
HELF fees will also soon be indexed to CPI but will undergo “regular” reviews based on the residents needs. These are optional and provide extra or higher quality services for residents.
The NCCC will be replacing the current means-tested fee and have a much higher lifetime cap. At the moment, the annual cap is $34,311 and the lifetime limit is $82,347.
Under the changes, the annual cap will be removed and residents could have to pay upwards of $105 per day and the lifetime cap will be $135,318.69. But the government will still continue to fund all clinical care.
New aged care residents who are assessed as having low financial means will not be affected by these changes.
Get the latest Yahoo Finance news – follow us on Facebook, LinkedIn and Instagram.