ACFI Monitoring Group Meeting 6 Outcomes
The sixth meeting of the Aged Care Funding Instrument (ACFI) Monitoring Group was held on Wednesday 27 March 2013 in Canberra.
The Monitoring Group reviewed ACFI data from July to December 2012. It showed that average ACFI subsidies in December 2012 ($135.70) were 0.3% above the average subsidies in November 2012 ($135.25) and 1.30% above June 2012 ($133.96). Average subsidies for July to December 2012 ($134.96) were 4.56% (including indexation) above the same period last year ($129.08).
The Monitoring Group noted that the six months of ACFI appraisal data was broadly in line with the government’s estimated impact prior to implementation. The Group expects that over the next three months, following the analysis of further data, this trend will be continued.
As this data builds, the Monitoring Group will track expenditure against target levels in the Commonwealth Budget forward estimates. The 2012-13 Budget of $9.1 billion is $382 million* more than the 2011-12 Budget. Under these reforms, average care subsidies are projected to grow by 2.7% per annum (above indexation) between 2012-13 and 2016-17.
The Monitoring Group noted the upward trend in the growth of average ACFI subsides with the inclusion of December 2012 data. It further noted that the monthly pattern of appraisals was slowly returning to historic trend levels (as seen in the table below).
| Appraisals | Jun 12 | Jul 12 | Aug 12 | Sep 12 | Oct 12 | Nov 12 | Dec 12 | Average of July 2011 to May 2012 |
|---|---|---|---|---|---|---|---|---|
| New Admit | 4,935 | 5,609 | 6,048 | 5,706 | 5,635 | 5,206 | 4,601 | 5,076 |
| Reappraisals | 10,262 | 6,049 | 6,509 | 6,007 | 6,705 | 7,338 | 7,288 | 7,305 |
| Total New Appraisals | 15,197 | 11,658 | 12,557 | 11,713 | 12,340 | 12,544 | 11,889 | 12,382 |
- average subsidies in December ($135.70) were in line with November ($135.25) and above June ($133.96);
- there continues to be strong growth in ACFI expenditure compared with the same period in 2011 - average subsidy per resident in July to December 2011 was $129.08 per day compared with $134.96 per day in July to December 2012 – approximately 2.9% increase above indexation compared to the same period last year;
- the average daily subsidy per resident for July to December was approximately $2.42 below what it would have been if the changes had not been introduced;
- approximately $2.16 of this reduction in growth came from the 1.6% price reduction, which when taken with indexation that occurred on the same day, meant that all ACFI subsidy rates were unchanged on 1 July 2012;
- approximately $0.09 of the reduction in growth came from the changes to the Activities of Daily Living domain which had impacted 0.23% of resident days;
- approximately $0.17 of the reduction in growth came from the change to the Complex Health Care domain which had impacted 0.62% of resident days; and
- approximately 0.01% of resident days were affected by both reclassification measures to the Activities of Daily Living domain and the Complex Health Care domain.
The Department provided an update to members on the agreed 1 July 2013 changes to the ACFI. It noted the Minister had subsequently agreed to three changes to the ACFI User Guide and Answer Appraisal Pack previously discussed by members at the 8 February 2013 meeting. Members noted the communication strategy prepared by the Department which outlines the communications approach to the sector about the 1 July 2013 changes.
* Updated following the release of the Portfolio Additional Estimates Statements tabled on 7 February 2013.
# For the purposes of the Monitoring Group, the average daily subsidy per resident is calculated based on ACFI appraisal data and includes the Conditional Adjustment Payment. It does not take account of Resident Classification Scale saved rates or other non-typical rates.
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