From the 1st of July 2014 the federal government under the Living Longer Living Better reforms have made significant changes to residential aged care including the removal of high and low care categories and substantial changes to the payment of fees.
Residents will now have to pay for ‘care costs’ and ‘accommodation costs’ based on their financial status.
All residents entering aged care from the 1st of July 2014 will be required to pay the basic daily care fee which is approximately 85% of the single person rate of the basic aged pension.
There is also a ‘means tested’ care fee which is determined by Centrelink and is based on an assessment of your income and assets, caps and figures are reviewed by the government every quarter. The government has set the current annual cap, if a resident does not reach the set cap before it is increased then the new cap will apply.
These charges are based on your income and assets and are determined by a formula applied by Centrelink.
You can now choose how to pay these costs in two ways via a ‘Refundable Accommodation Deposit’ (RAD) or ‘Daily Accommodation Payment’ (DAP) or a combination of both to suite your financial circumstances.
Grace Munro Aged Care has set the maximum Accommodation Deposit (RAD) at $300,000.00, however this amount is negotiable with management.
You have up to 28 days after entering to decide how you will pay your accommodation costs. During the 28 day period a DAP will be required to be paid.
For further information regarding these changes and financial advise you can contact the government’s information service My Aged Care on 1800 200 422 or view their web site at www.myagedcare.gov.au
Staff at this agency can answer questions and assist you to understand the financial changes and calculate costs for services.