New Protection on Costs for People in Aged Care
People who enter aged care homes from 1 July 2014 will benefit from greater consumer protection following a Federal Government decision requiring aged care providers to seek approval for charging fees over a certain level.
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21 December 2012
People who enter aged care homes from 1 July 2014 will benefit from greater consumer protection following a Federal Government decision requiring aged care providers to seek approval for charging fees over a certain level.
Minister for Ageing Mark Butler said for the first time aged care providers would be required to publish their accommodation prices and seek approval for charges over a certain level.
“Under the new tiered system, providers who want to charge above $50 a day will have to justify that cost and above $85 a day they will need to seek approval from the Government under a new set of guidelines.”
“Importantly, all prices will be published on the Government’s MyAgedCare website making the system more transparent and open to scrutiny.”
“This will set clearer boundaries and protect older people and their families from being overcharged or being asked to pay exorbitant fees without genuine justification.”
Mr Butler said the changes will be complemented by a new ‘Choice of Payment Method Period’.
“After agreeing on a price with an aged care home, new residents will have 28 days after moving in to decide whether to make accommodation payments via a Daily Accommodation Payment (DAP), a Refundable Accommodation Deposit (RAD) or a combination of both.”
The changes follow recommendations to the Government by the Aged Care Financing Authority after public consultations.
The Government asked the Authority to provide the advice as part of the $3.7 billion, 10-year, Living Longer Living Better aged care reform package announced last April.
In another major step forward in implementing the package, Mr Butler announced that aged care homes that significantly upgrade their facilities will be eligible to share more than $480 million in extra funding from 2014.
“This funding is designed to encourage growth and expansion in the aged care industry and follows recommendations made by the Aged Care Financing Authority on how ‘significant refurbishment’ should be defined.”
“The refurbishments can be made from 20 April this year and must substantially benefit Australia’s 167,000 Government-supported aged care residents.”
As a result of the new funding, aged care homes will be rewarded by an increased maximum accommodation supplement from the Government, which rises by 62 per cent – from a maximum $32.58 per resident, per day, to $52.84 from 1 July 2014.
“Residents will be the winners from these considerable incentives,” Mr Butler said.
“They will result in alterations, updates, upgrades and other improvements to residential care facilities, including bedrooms and common areas.”
Details of the changes to accommodation payments and the higher accommodation supplement are at Living Longer Living Better.
For more information, contact the Minister’s Office on 02 6277 7280
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