Changes are coming for residential aged care. Here’s what to know
- Written by Michael Woods, Professor of Health Economics, University of Technology Sydney
The way Australians pay for residential aged care, or nursing homes, is changing from November 1.
Payment arrangements will be grouped into four main areas:
There will be no changes for residents who are living in aged care homes on October 31.
In addition, new residents who are assessed as having low financial means will not be affected. These are typically full pensioners without major assets who have an income of less than A$34,762 (for a single pensioner, slightly less if one of a couple) and assets of less than $63,000. The government will cover the full costs of their care.
All low-means residents will continue to pay a basic daily fee to contribute to their everyday living expenses. This is calculated as 85% of the basic single age pension, which is $65.55 at the current pension rate. The government also pays providers an extra Hotelling Supplement to top up their funding.
Clinical care will be fully subsidised for all
The government will fully fund all clinical care costs for all residents in aged care homes from November 1.
Who will have to pay for non-clinical care and everyday living?
New means tested fees will be payable as a contribution to the costs of non-clinical care and everyday living for new residents who have higher means.
The government has published the Schedule of Fees and Charges that will apply from November 1 as well as a Fee Estimator. The following provides a simplified guide to these fees:
Authors: Michael Woods, Professor of Health Economics, University of Technology Sydney
Read more https://theconversation.com/changes-are-coming-for-residential-aged-care-heres-what-to-know-265676
