Aged Care Accommodation Payments from 1 July 2014
The early clarification by the Minister for Ageing, Mark Butler, regarding aged care accommodation funding arrangements that come into effect from 1 July 2014 allows the sector time to properly prepare.
The Minister made the announcement four days before Christmas with ACSA noting that any move which ensures sustainability for quality aged care services into the future is welcome. Also of note is that the Government has capped the accommodation fee at $85 rather than the $104 recommended by its own Aged Care Financing Authority.
Mr Butler said 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.”