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Aged Care Reform

Aged Care Reform. Department of Social Services April 2014. Reforms to date. 5 Bills passed in Parliament New Home Care Packages/Consumer Directed Care Four levels of Home Care Dementia and Veterans’ Supplements My Aged Care commenced operation Aged Care Pricing Commissioner

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Aged Care Reform

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  1. Aged Care Reform Department of Social Services April 2014

  2. Reforms to date • 5 Bills passed in Parliament • New Home Care Packages/Consumer Directed Care • Four levels of Home Care • Dementia and Veterans’ Supplements • My Aged Care commenced operation • Aged Care Pricing Commissioner • Homeless Supplement • Quality Agency • Approval of accommodation payments approach

  3. Reforms going forward 2014 • Accommodation prices to be published on My Aged Care • Changes to fees and subsidies • Removal of high/low distinction in residential care 2015 • Increased functionality – My Aged Care • Commonwealth Home Support Programme • Consumer Directed Care (CDC) for all Home Care Packages Future aged care reforms

  4. Key milestones ahead in Home Care 1 July 2014 • Income testing for home care 1 July 2015 • All Home Care Packages convert to CDC basis

  5. Income testing in Home Care • New consumers from 1 July 2014 with the income to do so can be asked to pay an income tested care fee. • Consumers will continue to pay a basic daily fee. • The Government will reduce the amount of subsidy it pays based on the care recipient’s income tested fee. • DHS will administer the income test.

  6. Home care – Government subsidy Vs. client contributions Current Future Government Subsidy 76% 84% Maximum Client contributions 24% 16% 84% equates to approx $1.2 billion and 16% equates to approx $0.2 billion, based on 2013/14 data.

  7. Example of Government Subsidy vs. Client Contribution for Level 2 HCP- total value of package equals $17,064 Current New Clients Post 1 July 2014 $13,644(80%) $13,644 (80%) $1,467 $5,000 $3,420 (20%) $3,420 (20%) Note: $3,420 is the max Basic Daily Fee. Not all recipients are asked to pay this. Income of $50,000 Income of $24,346 Income of $70,000 Income of $30,000 Basic Fee Contribution Income Tested Contribution Government Subsidy

  8. Home Care income thresholds and capsSingle person, March 2014 prices (current rates) $10,000 annual cap $5,000 annual cap $3,483 Full pensioners Part pensioners Self-funded retirees

  9. Home Care – safeguards • Full rate pensioners are not required to pay an income tested care fee • Recipients’ homes or other assets not included • Annual and lifetime caps • Hardship provisions

  10. Dementia and Veterans’ Supplements in Home Care • Dementia and Cognition Supplement; or • Veterans’ Supplement • At all levels of Home Care Packages • Diagnosis of dementia not required • Application forms are available on the Department of Human Services website

  11. Key milestones ahead in Residential Care 19 May 2014 • Providers must publish accommodation prices and information 1 July 2014 • Removal of distinction between low/high level care • Changes to means testing • Accommodation payments • Higher accommodation supplement for new or significantly refurbished facilities

  12. 1 July 2014 – Fees in Residential Care • A basic daily fee • Means tested fee • Extra Services fee • Accommodation Payments

  13. Means testing in Residential Care • Means testing to include both income and assets • Affects the amount the Commonwealth pays as subsidy • Conducted by the Department of Human Services when a resident enters care • Family home will continue to be exempt from the aged care assets test if occupied by a spouse or other protected person

  14. Residential Care – subsidies and fees from 1 July 2014 Government contribution Care recipient contribution Basic daily fee

  15. New Residents from 1 July 2014 $154,179 $154,179 High Means Moderate Means Pays 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 $45,000 Low Means $62,944 $24,731

  16. Greater choice in how accommodation in Residential Care is paid • Refundable Accommodation Deposit (RAD), or • Daily Accommodation Payment (DAP), or • a combination of RAD and DAP 28 days after entry to decide on payment method

  17. Safeguards • Grandparenting for those already in care • Annual and lifetime caps • Hardship provisions • Home not counted as asset or capped for means testing purposes

  18. Dementia and Veterans’ Supplements in Residential Care • Dementia and Severe Behaviours Supplement • Veterans’ Supplement • Both supplements can be paid • On top of ACFI • Applications required for the Dementia & Severe Behaviours Supplement • No applications required for the Veterans’ Supplement

  19. Commonwealth Home Support Programme • Commences 1 July 2015 • Combines under one programme: • Commonwealth Home and Community Care Program • National Respite for Carers Program • Day Therapy Centres • Assistance with Care and Housing for the Aged

  20. For more information…. Ongoing updates available at: My Aged Care website (www.myagedcare.gov.au) www.dss.gov.au/agedcare

  21. Any questions?

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