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Previous Residential Care Fees and Charges Advices

As at: 20 September 2009

Archived residential care fees and charges

Correction of advice to some part pensioners and aged care providers regarding the basic daily fee and the income tested fee.

The Department has identified and corrected an administrative error which has affected the fees charged for some part pensioners in residential aged care. This error meant that incorrect advice was sent to affected residents, their nominees and aged care providers regarding the maximum amounts of basic daily fee and income tested fee that can be charged by aged care providers. The error was only in letters sent to some residents between 20 September and 24 October 2009.

The Department has worked closely with Medicare Australia to correct the Aged Care Payment System which was updated on 24 October 2009.

The Department is sending new letters to all affected residents, their nominees and aged care providers to apologise for the error and to advise them of the correct information.

The letters to aged care services require the services to refund any overpayment to residents, and to confirm in writing to the Department that they have done so.

Once fees have been corrected and refunds paid, no resident will have been charged more than they should have been.

The Department has increased the availability of staff to answer questions and provide advice to any residents or services wanting further information.

Residents and their representatives who require additional information may contact the Aged Care Information Line on 1800 500 853.

Service providers requiring information about their letter with the list of affected residents, or subsidies should be directed to Medicare Australia on 1800 195 206, option 1.

Background

This error affects some residents who were in care on or before 19 September 2009 and who were still in care on 20 September 2009; and some residents who entered care on or after 20 September 2009. The residents affected are those who as single people have fortnightly non-pension income between $360 and $721.50; and those who as a member of a couple have a fortnightly non-pension income between $342 and $703.50.

Schedule of fees and charges: from 20 September 2009

In response to consumer feedback, the Department has re-formatted the Schedule of Residential Aged Care Fees and Charges to make it easier to read and understand.

Schedule of resident fees and charges: from 20 September 2009

Maximum Basic Daily Fee¹

Fee/Charge/Thresholds	Residents who entered care from 20 September 2009
- Standard Resident contribution2 - includes respite residents	up to $36.94
- Protected resident contribution2	up to $33.74
- Phased Resident Contribution2	up to $33.74
- Non-Standard Resident Contribution2	up to $42.02

Residents who were in a hostel on 30 September 1997 and who are not currently at a home that was a nursing home before 1 October 1997 will receive a reduction of 80 cents per day to their basic daily fee.

Maximum Daily Income Tested Fee up to $59.38

Income tested fees are calculated at 5/12th of total assessable income over the income tested fee thresholds per fortnight.	Income Tested Fee Thresholds - Singles	Income Tested Fee Thresholds - Each member of a couple
Standard	$783.70	$765.70
Non-Standard	$783.70	$765.70
Protected	$721.50	$703.50
Phased	$721.50	$703.50
Pensioner allowable limit for Accommodation bonds Residents who initially entered care and agree to roll over a bond of more than 9 times the annual single age pension		$144,000

Minimum Assets Amount

Fee/Charge/Thresholds	Residents who entered care from 20 September 2009
A resident must be left with this amount when calculating the maximum accommodation bond.	$36,000

Asset Cut-off Level*

Fee/Charge/Thresholds	Residents who entered care from 20 September 2009
- for fully supported3 resident status	$36,000
- for partially supported3 resident status	$91,910.40

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Maximum Permissible Interest Rate

Fee/Charge/Thresholds	Maximum Permissible Interest Rate
- for accommodation bond agreements (for all new residents from 1 October – 31 December 2009)	7.30%
- for accommodation charge agreements (for all new residents from 20 March 2009)	4%

Maximum Accommodation Charge for new entrants to residential aged care 20 Sept 2009 - 19 March 2010

Fee/Charge/Thresholds	Maximum Accommodation Charge
For fully supported residents	N/A
Non-supported residents, if their assets at entry are at least $91,910.40 - who are not in receipt of a means-tested Australian pension	$26.88
Non-supported residents, if their assets at entry are at least $91,910.40 - who are in receipt of a means-tested Australian pension	$25.05
Supported residents, if their assets at entry are equal to or less than $91,910.40	calculated amount6

Maximum Accommodation Charge for pre 20 March 2008 residents who enter your home during the period 20 Sept 2009 - 19 March 2010⁷

Fee/Charge/Thresholds	Maximum Accommodation Charge
Assisted residents, if their assets at entry are at least $56,221	$11.08
Assisted residents, if their assets at entry are less than $56,221	calculated amount3
Other residents, if their assets at entry are at least $71,351	$19.37
Other residents, if their assets at entry are less than $71,351	calculated amount3

Maximum Accommodation Charge for Residents who first entered residential aged care before 1/7/2004⁸

Fee/Charge/Thresholds	Maximum Accommodation Charge
Assisted residents, if their assets at entry are at least $51,458	$8.47
Assisted residents, if their assets at entry are less than $51,458	calculated amount3
Other residents, if assets at entry are at least $66,076	$16.48
Other residents, if assets at entry are less than $66,076	calculated amount3

Pensioner Supplement - $6.95

Deeming Thresholds and rates from 1 July 2009

Thresholds	Deeming Thresholds and rates
Threshold (single)	$42,000
Threshold (couple – combined)	$70,000
Lower rate	2%
Higher rate	3%

1. Residents in designated remote areas may be asked to pay an additional $1.06 per day (See section 4 page 135 of the Residential Care Manual).

2. See Information Sheet 12 – Basic daily fees for Residential Aged Care.

3. Contact the Department on 1800 500 853.

4. Rate remains unchanged for resident's stay in the one home, regardless of annual indexation of the maximum rate for new entrants.

5. From 20 March 2008, accommodation charges are capped, even if a resident moves from one home to another, provided that there is not a break in care of more than 28 days (excluding leave).

6. The Department of Health and Ageing sends letters to advise amount (does not include flexible care residents).

7. And who haven't left permanent residential aged care for more than 28 days before entering care after 20 March 2008.

8. Accommodation charge limited to a maximum period of five years and is fixed at date of entry even if they have a break in care of more than 28 days.

Previous Schedules of Fees and Charges

For information please contact the Department on 1800 500 853.
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