Improvements to payment administration arrangements for home care packages

Information relating to payment arrangements for home care packages.

Date published:
Subscriber announcement
Health sector

In the 2019-20 Budget, the Australian Government announced improvements to payment arrangements for home care packages. This will align home care with other Government-funded programs where providers are paid in arrears and for actual services delivered once they are delivered.

Last year, the Aged Care Financing Authority (ACFA) consulted with home care providers on the potential financial impact of these changes. The department also consulted with providers on the non-financial impacts.

Having considered the outcome of those consultations it has been determined that phase 1, home care payments in arrears will commence on 1 June 2020.

Home care providers will receive the final advance payment at the start of May 2020. There will be no advance payment at the start of June or any later month with full payment of the monthly subsidy instead made after the providers lodge their monthly claim.

Providers will lodge their claim for this June after 30 June 2020 as per normal and with the same information that is currently required.

Yesterday, a Bill was introduced into parliament to amend the Aged Care Act 1997 to implement phase 1.

The second phase of the measure will involve payments being made both in arrears and based on actual services provided to each care recipient. The implementation of this phase will be announced after final consideration of the consultation outcomes is complete.

Further information is available on the department’s website.