Residential aged care
Recommendation 6
The committee recommends that the Government review the access and funding arrangements for concession residents in residential aged care facilities under the hardship provisions of the Aged Care Act 1997. In particular, it should determine the amount required to finance basic needs such as pharmaceuticals – including medication not covered under the Pharmaceutical Benefits Scheme – clothing, toiletries, and some discretionary spending to allow necessary social participation and at least a decent quality of life. (Chapter 6)
Response
Much has recently been done in the area of residential aged care fees.
Basic daily fees for residential aged care are set at the equivalent of 85 per cent of the single Age Pension. A resident with income greater than the Age Pension may also be requested to pay income-tested fees. The intention is to leave residents with at least the equivalent of 15 per cent of the Age Pension for discretionary spending on such items as clothing, toiletries and medication not covered under the Pharmaceutical Benefits Scheme.
The financial hardship assistance provisions of the Aged Care Act 1997 allow residents who are experiencing financial difficulties due to circumstances outside of their control, to pay a lesser amount in fees. The financial hardship provisions are flexible ensuring that each resident’s particular financial situation is taken into consideration. Since 20 March 2008, the Government is paying higher accommodation subsidies for new residents with few assets. This increase means fewer residents will need to apply for hardship assistance.
Recommendation 7
The committee recommends the Government review the disparity in the fees paid by those people entering residential aged care requiring high level care and those requiring low care to ensure that all people in residential aged care are treated equitably. (Chapter 6)
Response
All residential care fees and charges were reviewed prior to the changes which came into effect on 20 March 2008.