The Commonwealth Department of Health (DoH) subsidises the cost of care for both the residential and home care programs and pays all care providers a care subsidy each month.
DoH also determines the basic daily care fee and means tested care fee with twice yearly reviews on 20th March and September. Costs vary depending on your financial means with the Commonwealth governments reform agenda means that if you are able to pay for the cost of the care then it expects you to do so. A means tested care fee (care co-contribution) has been introduced. This is a tax by the government which aged care homes are required to collect from you. Every resident is required to pay the basic daily care fee which is currently $49.42 per day. The means tested care fee is in addition to the basic daily care fee. The requirement to pay an Refundable Accommodation Deposit is dependent upon your income and assets ie ‘your means’. This is discussed in more detail below.
To access Commonwealth subsidised care you must have been assessed by the Aged Care Assessment Team (ACAT)who are the gatekeepers to Commonwealth subsidised care including residential and Home Care. ACAT’s role is to assess for the type of care appropriate to your needs at the time of assessment. The assessment usually takes place in your own home once referral has been made by your doctor or health provider on the My Aged Care website. The Toowoomba ACAT visit Goondiwindi about monthly. ACAT welcomes you to have a support person with you at this assessment. To make a referral to ACAT go to the My Aged Care Website at www.myagedcare.gov.au/ or telephone 1800 200 422 to make a referral. Alternatively our Chief Executive Officer is only too happy to assist you with this referral.
Respite Care: Is temporary care. You will only be required to pay the basic daily care fee which currently is $49.42 per day. There are no additional fees or costs except for your personal items and medications.
Means Tested Care Fee: Is in addition to the basic daily care fee. Residents with income and assets above the pensioner allowed level may be assessed by the Commonwealth government as being eligible to pay an this fee. We urge you to seek the advice of your financial planner to assist with the calculation of the means tested care fee. Please note that this fee is a government tax which aged care provider are required to collect on behalf of the government – the aged care provider does not keep this fee. Changes in both income and assets will result in changes to the means-tested care fee and/or the accommodation contribution paid by residents who receive government support with their accommodation. DSS has set an annual cap of $26,566.54 or a lifetime cap of $63,759.75.
DHS (Centrelink) and DVA will use the information they collect for income support payment purposes to update a resident’s income and assets for aged care purposes. Consistent with current arrangements this would include the resident advising when there are significant changes to assets.
A self-funded retiree should advise DHS (Centrelink) of any changes in their circumstances.
Refundable Accommodation Deposit: From 1st July 2014 all persons entering an aged care home on a permanent basis will be assessed for eligibility to pay an refundable accommodation deposit (RAD). If you have no assets or assets less than $47500 then you will not be required to pay the RAD. Kaloma’s bed price varies from $400,000, $450,000 and $550,000.. The $550,000 rooms are 42 square metres and have a separate bedroom and dining room). You must be left with $46500 in assets before you can required to pay any level of accommodation deposit. Example: if your assets are $346,500.00 then you will be required to pay the bed price of $400,000 and you elect to pay $300,000 lump sum then the balance of $100,000 will be deducted from the lump sum by way of a Daily Accommodation Payment of $16.47 per day ($6,010.00 per annum).
How you choose to pay this RAD is at your discretion and you have 28 days from the time of entry into permanent care before you have to provide the aged care provider with your decision. You may elect to pay the full amount of RAD you are assessed as having to pay. Alternatively you may elect to pay a lump sum and have the balance deducted from the lump sum by way of a Daily Accommodation Payment (DAP).
You don’t have to pay any lump sum at all and you may elect to pay the Daily Accommodation Payment which is invoiced to you along with your basic daily care fee, means tested care fee (if applicable). The decision is yours but the aged care provider needs to know within the 28 period following your admission. The interest rate applicable to the RAD is set by the Commonwealth government is reviewed quarterly. Aged care providers are governed by this interest rate. The maximum permissible interest rate (MPIR) is currently set at 5.7% . The DAP can be deducted from any lump sum RAD you pay.
Example of RAD and DAP:
If you assessed to pay a $400, 000 RAD and you elect not to pay this then you will be invoiced to pay $62.46 per day ($22,800 per annum).
If you elect to pay $200,000 lump sum RAD then your DAP will be $200,00 at 5.7% divided by 365 days = $31.23 per day DAP ($11,400 per annum).
In summary – Residents can choose to pay for their accommodation by a refundable deposit (RAD), a daily payment (DAP) or a combination of both. The daily payment accrues daily and is paid periodically eg monthly. A combination payment is both a partial lump sum and daily payments.
Additional Services – Kaloma offers some additional services to all residents. Menu Choices is $10.00 per day; beer/wine with meals is $4.00 per glass/stubby; Assistance to attend appointments when family are unable to is $52.00 per hour. Please note that when selecting Menu Choices that it is expected that this will be an ongoing service not day by day as this is too difficult to meet given that we have to order food supplies on a weekly and monthly basis.
Home Care (Community based care): The Commonwealth government determine the fees payable for access to a home care service. The cost of a home care package is $142.38 per fortnight. Our flexible home care program can assist you 7 days per week and services are varied to meet your individual need as long as it fits within your budget of subsidy paid by the Commonwealth government and what you pay.
The Department of Human Services will determine if you are to pay an additional contribution toward the cost of your care called an income tested fee. This is a tax we have to collect for the Commonwealth government. If you are a full aged pensioner then you will not be affected by this tax.
Part pensioners you may have to pay an additional daily cost of up to $14.56 per day ($5,313.28 per annum). Self funded retirees may have to pay up to an additional $29.11 per day ($10626.59 per annum) There is a lifetime cap of $63,759.75 of income tested fee. It is important to note that if you were to enter permanent residential care, that any monies you pay in income tested fees as a home care client will automatically be deducted from the lifetime cap.
Private Fee for Service – Kaloma offers services on a full cost paying basis. Currently we charge $52 per hour week-days and a higher rate on week-ends/public holidays. It is based on the number of minutes the staff are in your home supporting you. This service is usually used by older persons on the waiting list for a subsidised package.
Please feel free to contact Kaloma’s Chief Executive Officer on telephone 07 46711422 to discuss this information to or make an appointment so that these costs can be explained further.