The most frequently asked question when people are considering entering aged care services/homes relates to the cost.
From 1st of July, 2014, persons using aged care services who have been assessed by Centrelink as having the financial capacity, are required by the Government to contribute to their care and accommodation.
The following information outlines the various fees and charges that are associated with aged care. These charges will vary depending on individual financial circumstances. Don’t stress however, we are here to assist you and if you wish, we invite you to visit the Beaumont Care Aged Care Information Hub, and we will sit down with you, and fathom through the costs.
From the 1st of July 2014, the cost to access a subsidized community care package will increase for those persons who are deemed by the Government to have the financial capacity to pay.
From 1st July, new residents entering a Home are required to pay for their accommodation according to their ‘means’ as well as for their care and services. All new residents who have the financial capacity may be required to pay a “Bond” (now called Refundable Accommodation Deposit or RAD) or an equivalent Daily Accommodation Payment (DAP), or a combination of RAD and DAP.
All aged care providers have been required by the Government to put a price on their bedrooms, equivalent to a “Bond” (now RAD), and have had to describe the accommodation, care and services which they offer plus the price for accessing accommodation – ‘a bed’ – on a new website – “My Aged Care”. The Government will reduce payments to Aged Care Providers when a resident has the capacity to pay for the accommodation which they choose.
RADs are paid in full on entry to the Home, and will be fully refunded when the resident leaves the Home - unless arrangements have been made with the home to deduct daily care fees from the RAD.
Additional to RADs, from 1st July, new residents who have the capacity to pay are required to pay more for their care and services. The amount which they will be required to pay will be identified by Centrelink via a means tested care fee. For those residents who are assessed as being able to pay for their care and services, the Aged Care Provider will receive less funding from the Government.
These charges apply to older persons who are accessing residential aged care, however an annual cap is applied to these additional care fees – $25,528.71 for people in residential aged care. A lifetime cap of $61,268.92 is also applied. When this cap is reached, the means tested care fees payable by the resident cease.
Older persons will still be required to pay 85% of the full aged pension when they are living in residential aged care.
Additional information is available on the Department of Social Services website.
Sue Suchocki, Josie (pictured)