Vulnerable elderly people could be priced out of laundry and showering help under Labor’s new model for aged care, the independent watchdog has warned, two months out from a co-payment system coming into force.
The aged care inspector general, Natalie Siegel-Brown, has used a major report to warn of “genuine fears” the model asking some elderly people to pay more for non-clinical care could see some forgo services.
Tracking implementation of recommendations from the landmark royal commission into aged care, Siegel-Brown’s report warned the co-payment model for residential and at-home care “is contrary to the royal commission’s intent”.
The report continued that “implementing co-payments may set up a scenario where vulnerable older Australians will forego care: either because they cannot afford it or because they are worried about the cost”.
This week the government caved in to demands from the Senate crossbench and agreed to bring forward 20,000 in-home aged care funding places in the eight weeks before the new system starts.
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Under the changes, elderly people in residential care will make co-payments for daily living expenses and accommodation costs but sector operators and experts have warned this could lead to a two-tier system with a disincentive for homes to accept government-supported residents due to lower revenue.
Siegel-Brown said while the pool of government funding was not unlimited, she feared the changes could “potentially create unnecessary cost blow outs” or pre-emptively push people into residential aged care when they cannot access or afford the care they need to stay at home.
“While my primary concern is for the human rights consequences, the fact is that this act could ultimately cost the taxpayer more.”
The report also warned Indigenous aged care services would be streamlined, limiting the ability of providers to offer culturally responsive and flexible care.
The Greens’ aged care spokesperson, Penny Allman-Payne, called the inspector general’s report a wake-up call.
“This report has warned of a two-tiered system, where aged care increasingly becomes about the care you can afford rather than the care you need,” she said.
“I am scared stiff for older people under this new system.
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“Labor needs to come clean about how much older people will pay under this new system and whether they will be able to access care.”
Demand for aged care is expected to surge. Australia is on track for a doubling of people over 65 and a tripling of those aged over 85 within 40 years.
The aged care minister, Sam Rae, said the government acknowledged “the job ahead of us”.
“There’s much more to do to realise the full vision of what the inspector-general describes as a ‘magnificent mandate’ for our aged care system.”
Labor has finalised 54 of the 148 commission recommendations, with a further 94 in progress.