What Reforms?
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
Achievements
 Changes to legislation
 Home Care Packages Programme
 New supplements
 MyAgedCare and call centre
 Australian Aged Care Quality Agency
 Aged Care Pricing Commissioner
Reforms going forward
2014
Accommodation prices
published on
MyAgedCare
Changes to fees and
subsidies
Removal of high/low
2015
Increased functionality
– MyAgedCare
Commonwealth Home
Support
CDC for all Home Care
Packages
High Care and Low Care
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.
Conditions of allocation
 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
Care approvals
• No distinction between high and
low approvals
• Approvals will not lapse
How do we classify
residents?
ACFI
Ageing in place
Check your resident agreements
Remove ‘low care’ and ‘high care’
references
No Change to Residential
Respite
Schedule of Specified Care
and Services
 Proposed modernisation of items
 Classifications that can be charged
a fee for Part 3
 Additional care and services
My aged care website
My Aged Care
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 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.
More information….
Ongoing updates are available at:
My Aged Care website
www.myagedcare.gov.au
Department of Social Services website:
www.dss.gov.au/agedcarereform
Aged Care Reforms – Home
Care
May 2014
Key Milestones
1 July 2014
Income testing for home care
1 July 2015
All Home Care Packages convert to CDC
Income testing in Home Care
Consumers can continue to be asked to pay a
basic fee
Some consumers can be asked to pay an incometested 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
Home care – Government subsidy Vs. Client
contributions
84% equates to approx $1.2 billion and 16%
equates to approx $0.2 billion, based on
2013/14 data.
Home Care income thresholds and caps
Single person, March 2014 prices (current rates)
Home Care – Safeguards
Grandparenting arrangements
Caps on the amount of income tested fees
Full pensioners will not pay any income
tested fees
Part pensioners pay up to $5000
Self Funded Retiree’s pay up to $10,000
Financial Hardship Assistance
Home Care
Worked examples
March 2014 prices
Worked example 1 - Rose
Income tested care fee
$0.
The Government will meet the full
cost of Rose’s care.
Income test
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.
+
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 2 - Joseph
Total assessable income:
Income free area:
Income tested care fee
$65,000 p.a.
$24,731.20
Joseph’s income tested care
fee will be the lower of:
Total assessable income > income free area:
•
Joseph can be asked to pay an income
tested care fee.
$27.47 per day (being the
daily calculation of the
$10,000 annual cap) or
•
His care costs ($37.38);
Joseph’s income is above the upper cap
threshold of $57,882 so $10,000 cap
applies.
Joseph can be asked
to pay a maximum of
$27.47 per day.
+
Joseph’s package costs: $37.38 per day
Basic fee
$3,483 per year
For more information
•
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 agedcarereforms@dss.gov.au
•
* 1800 calls are free from fixed lines; however, calls from mobiles may be charged.
Aged Care Reforms –
Residential Care
May 2014
Overview
• Key Milestones
• Overview of new fee arrangements
• New means testing arrangements
• Accommodation Payments
• Safeguards for Residents
• Examples of the new fee arrangements
Key Milestones
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.
Residential Care Fees from
1 July 2014
• Basic Fee
• Means Tested Care Fee
• Accommodation
• Extra Services Fee
• Additional Services Fee
Means Testing in Residential Care
• 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
Safeguards for Residents
Grandparenting arrangements
Annual and lifetime caps
Annual cap of $25,000
Lifetime cap of $60,000
Safeguards on the family home
Financial Hardship Assistance
Subsidies and Fees from 1 July 2014
New Residents from 1 July 2014
$154,179
Higher Means
Moderate Means
Pays Basic daily fee
Pays basic daily fee
Pays Accommodation Contribution
Pays Accommodation Payment
(receives some Accommodation Supplement)
(no supplement)
Does not pay Means Tested Care Fee
– care is fully subsidised
Pays Means Tested Care Fee
– care is partially subsidised
Pays basic daily fee only
Receives full Accommodation Supplement
$45,000
Does not pay Means Tested Care Fee
– care is fully subsidised
Lower Means
$24,731
$62,944
Accommodation Costs – What’s New?
• Choice of Payment Method
• Refundable Accommodation Deposit
or
• Daily Accommodation Payment
• Combination of Both
• Fairer Assessment of Capacity to Pay.
Accommodation prices– What’s New?
• 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
Residential Care Examples
Jenny
Paying for accommodation
Jenny has income less than $24,731, assets less
than $45,000
Amelia
Paying for Accommodation
Amelia with income of $21,913 and assets of $120,000
Peter
Government Accommodation vs Client Contribution for
Accommodation Costs
Peter with income of $65,000, assets of $1,344,500
Total assessable income: $65,000
Income free area: $24,731.20
Therefore:
= 50% × ($65,000 - $24,731.20) / 364
Peter
= $55.31
Income tested amount = $55.31
Total assessable assets: $1,344,500
Asset free area:
$45,000
Working 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
Means Tested
Amount
=$167.21
Peter
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
For more information:
•
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.
My Aged Care
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.