If you do not change direction, you may end up where you are heading Caring for Older Australians ...
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Transcript of If you do not change direction, you may end up where you are heading Caring for Older Australians ...
![Page 1: If you do not change direction, you may end up where you are heading Caring for Older Australians Reducing red tape Quality care for consumers What.](https://reader035.fdocuments.in/reader035/viewer/2022062712/56649ca75503460f9496a6b4/html5/thumbnails/1.jpg)
Aged Care Reforms Overview May 2014
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If you do not change direction, you may end up where you are
heading
Caring for Older Australians
Reducing red tape
Quality care for consumers
What Reforms?
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Changes to legislation Home Care Packages Programme New supplements MyAgedCare and call centre Australian Aged Care Quality Agency Aged Care Pricing Commissioner
Achievements
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2015Increased functionality – MyAgedCare
Commonwealth Home Support
CDC for all Home Care Packages
2014Accommodation prices published on MyAgedCare
Changes to fees and subsidies
Removal of high/low
Reforms going forward
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Only permanent residential aged care
This distinction currently affects:• conditions of allocation for residential aged
care places;• care approvals;• resident classifications; and• residential aged care accommodation
payment arrangements.
High Care and Low Care
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1 July 2014 NO high care and NO low care places – all just residential care places
Next ACAR NO high care NO low care place allocation
Conditions of allocation
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• No distinction between high and low approvals
• Approvals will not lapse
Care approvals
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ACFI
How do we classify residents?
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Check your resident agreements
Remove ‘low care’ and ‘high care’ references
Ageing in place
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No Change to Residential Respite
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Proposed modernisation of items
Classifications that can be charged a fee for Part 3
Additional care and services
Schedule of Specified Care and Services
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My aged care website
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My Aged CareFor information about aged care services, and how to access them:• Visit the My Aged Care website at www.myagedcare.gov.au or• Call 1800 200 422*Call My Aged Care operators to discuss your needs from:• Monday to Friday – 8am to 8pm (local time)• Saturday 10am to 2pm (local time).The call centre is closed on public holidays.If you are deaf or have a hearing or speech impairment, we can help through the National Relay Service. Call 1800 555 667* and ask for 1800 200 422*,If you need an interpreter, we can help through the Translating and Interpreting Service. Call 131 450 and ask for 1800 200 422*.*1800 calls are free from fixed lines; however,calls from mobiles may be charged.
![Page 14: If you do not change direction, you may end up where you are heading Caring for Older Australians Reducing red tape Quality care for consumers What.](https://reader035.fdocuments.in/reader035/viewer/2022062712/56649ca75503460f9496a6b4/html5/thumbnails/14.jpg)
Ongoing updates are available at:
My Aged Care websitewww.myagedcare.gov.au
Department of Social Services website:www.dss.gov.au/agedcarereform
More information….
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Aged Care Reforms – Home CareMay 2014
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1 July 2014Income testing for home care
1 July 2015All Home Care Packages convert to CDC
Key Milestones
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Consumers can continue to be asked to pay a basic fee
Some consumers can be asked to pay an income-tested care fee
The amount of subsidy paid is reduced by the consumer’s income tested fee
DHS will administer the income assessment
There will be a fee estimator on My Aged Care
Income testing in Home Care
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84% equates to approx $1.2 billion and 16% equates to approx $0.2 billion, based on 2013/14 data.
Home care – Government subsidy Vs. Client contributions
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Home Care income thresholds and capsSingle person, March 2014 prices (current rates)
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Grandparenting arrangements
Caps on the amount of income tested feesFull pensioners will not pay any income
tested feesPart pensioners pay up to $5000Self Funded Retiree’s pay up to $10,000
Financial Hardship Assistance
Home Care – Safeguards
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Worked examples
March 2014 prices
Home Care
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Total assessable income: $14,500 p.a.A care recipient who is a member of a couple is taken to have half of the couple’s combined assessable income ($29,000 / 2)
Income free area*: $19,172.40(*partnered person rate)
Total assessable income is less than the income free area, therefore:
Rose cannot be asked to pay an income tested care fee.
Income test
Income tested care fee$0.
The Government will meet the full cost of Rose’s care.
Basic daily fee$3,483 per year or
$9.57 per day
Note:Rose’s provider can charge her the basic daily fee. This is calculated at 17.5% of the basic age pension.
+
Worked example 1 - Rose
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Total assessable income: $65,000 p.a.
Income free area: $24,731.20
Total assessable income > income free area:
Joseph can be asked to pay an income tested care fee.
Joseph’s package costs: $37.38 per day
Income tested care fee
Joseph’s income tested care fee will be the lower of:
• $27.47 per day (being the daily calculation of the $10,000 annual cap) or
• His care costs ($37.38);
Joseph can be asked to pay a maximum of $27.47 per day.
Basic fee$3,483 per year
+
Joseph’s income is above the upper cap threshold of $57,882 so $10,000 cap applies.
Worked example 2 - Joseph
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• My Aged Care website (www.myagedcare.gov.au or 1800 200 422*
• Ongoing updates available at the Department’s website
(http://www.dss.gov.au/agedcarereform)
• Email questions to [email protected]
• * 1800 calls are free from fixed lines; however, calls from mobiles may be charged.
For more information
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Aged Care Reforms – Residential CareMay 2014
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• Key Milestones
• Overview of new fee arrangements
• New means testing arrangements
• Accommodation Payments
• Safeguards for Residents
• Examples of the new fee arrangements
Overview
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19 May 2014• Publication of accommodation prices began
1 July 2014• New means testing arrangements• Accommodation payments• Higher accommodation supplements • Removal of high/low care distinction
There are grandfathering provisions for existing residents.
Key Milestones
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• Basic Fee
• Means Tested Care Fee
• Accommodation
• Extra Services Fee
• Additional Services Fee
Residential Care Fees from 1 July 2014
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• Income and assets combined test conducted by DHS
• Determines the fees and therefore the Commonwealth Subsidy paid for each resident
• Fee estimator available from 1 July 2014
Means Testing in Residential Care
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Grandparenting arrangements
Annual and lifetime capsAnnual cap of $25,000Lifetime cap of $60,000
Safeguards on the family home
Financial Hardship Assistance
Safeguards for Residents
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Subsidies and Fees from 1 July 2014
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Lower Means
Higher MeansModerate MeansPays basic daily fee
Pays Accommodation Payment (no supplement)
Pays Means Tested Care Fee – care is partially subsidised
Pays Basic daily fee
Pays Accommodation Contribution(receives some Accommodation Supplement)
Does not pay Means Tested Care Fee – care is fully subsidised
Pays basic daily fee only
Receives full Accommodation Supplement
Does not pay Means Tested Care Fee – care is fully subsidised
New Residents from 1 July 2014$154,179
$45,000
$24,731 $62,944
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• Choice of Payment Method• Refundable Accommodation Deposit
or • Daily Accommodation Payment • Combination of Both
• Fairer Assessment of Capacity to Pay.
Accommodation Costs – What’s New?
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• Consumer Protection and Safeguards• Accommodation Price cannot be more than the
price published• Prices over $550,000 must be approved by Aged
Care Pricing Commissioner
• Increased Price Transparency• Prices must be published on MyAgedCare,
provider websites and relevant printed materials
Accommodation prices– What’s New?
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Residential Care Examples
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Jenny
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Paying for accommodationJenny has income less than $24,731, assets less
than $45,000
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Amelia
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Paying for AccommodationAmelia with income of $21,913 and assets of $120,000
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Peter
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Government Accommodation vs Client Contribution for Accommodation Costs
Peter with income of $65,000, assets of $1,344,500
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Means Tested
Amount
=$167.21Total assessable assets: $1,344,500
Asset free area: $45,000Working out the asset tested amount:17.5% x ($154,179 – $45,000)+1% x ($372,537– $154,179)+2% x ($1,344,500 – $372,538)
= $40,729.16 / 364
Asset tested amount = $111.89
Total assessable income: $65,000
Income free area: $24,731.20 Therefore:
= 50% × ($65,000 - $24,731.20) / 364
= $55.31
Income tested amount = $55.31
Peter
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Accommodation costs
Peter will pay his own accommodation costs because his means tested amount is greater than $52.49
Means tested care fee
Peter pays a means tested care fee of $114.72 up to $25,000 p.a
$167.21 - $52.49 = $114.72
Basic daily fee
$46.50 per day
+
+
Peter
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• My Aged Care website (www.myagedcare.gov.au or 1800 200
422*
• Ongoing updates available at the Department’s website
(http://www.dss.gov.au/agedcarereform).
• Transitional Business Advisory Service on 1800 122 092 or by
visiting the website at www.kpmg.com/AU/en/industry/Aged-
Care/tbas/
• * 1800 calls are free from fixed lines; however, calls from mobiles may be charged.
For more information:
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For information about aged care services, and how to access them:• Visit the My Aged Care website at www.myagedcare.gov.au or• Call 1800 200 422*Call My Aged Care operators to discuss your needs from:• Monday to Friday – 8am to 8pm (local time)• Saturday 10am to 2pm (local time).The call centre is closed on publish holidays.If you are deaf or have a hearing or speech impairment, we can help through the National Relay Service. Call 1800 555 667* and ask for 1800 200 422*,If you need an interpreter, we can help through the Translating and Interpreting Service. Call 131 450 and ask for 1800 200 422*.*1800 calls are free from fixed lines; however,
calls from mobiles may be charged.
My Aged Care