What home assistance are seniors entitled to?
WHAT form of home assistance are seniors entitled to and who should we contact for help was a question posed to me recently.
To answer this question I use the example of a woman, aged 83, a widow and living at home. Her child is worried about her mum's welcome as the mother refuses to consider moving to an Aged Care facility Home. She receives $916 a fortnight Age Pension and has a $140,000 term deposit with the bank.
Residing at home as long as possible is a key priority for most elderly people. While there is a general acceptance that they need assistance in some aspects of daily living, they fiercely value their independent living.
Access to Home Care Packages (HCP) is initiated via My Aged Care and the Department of Human Services. The program provides services to assist individuals to remain at home for as long as possible by providing choice and flexibility in the way support and care services are provided.
To be eligible for a HCP the mum must be assessed by the Aged Care Assessments Team (ACAT). The ACAT will then prepare a letter confirming eligibility for a HCP and detail the level of care your mum is approved for.
The level of Government subsidy available depends upon what level of support she is deemed to require. There are four levels of HCP available - Level 1 for basic needs, $22.66 government subsidy per day; Level 2 for low level care needs, $41.22 government subsidy per day; Level 3 for intermediate care needs, $90.62 government subsidy per day; and Level 4 for high level care needs, $137.77 government subsidy per day.
The mum will then be placed in the national priority queue for HCP and will be contacted when a package becomes available.
Waiting times will vary and could be as long as 14 months. Once offered, she will have up to 56 days to accept the package and choose a provider.
The child should meet with providers in the area to discuss services available. Services can be tailored based on the mum's personal needs and the funding available. These may include, transport for shopping and appointments, social support by way of companionship, domestic assistance for household tasks such as cleaning and lawn mowing, personal care assistance for bathing or dressing, food services such as assistance with preparation or delivery of meals, home modifications for example installing medical alert alarms, ramps and rails.
HCP can't be used as a general source of income for day to day living expenses rather; it is a subsidy paid to HCP providers. The mum can choose which HCP provider she would like to use for particular services she requires.
When accepting an HCP the recipient may be asked to pay a range of fees towards the cost of their care depending on their circumstances. A basic daily care fee is negotiated between the recipient and the provider. The maximum daily care fee is capped at 17.5 per cent of the maximum single Age Pension rate. Currently, the cap rate is $10.43 per day.
Depending on the mum's income, an income-tested fee may apply. This income tested fee reduces the government subsidy paid to the HCP provider. The provider will charge the same cost for the approved level of support, however, the mum will pay a greater portion of the cost.
An income tested fee is not payable if the mum's income is less than $26,986. If the mum's income exceeded this threshold but was less than $52,036, then the fee applicable would be 50 per cent of the income in excess of $26,985 capped at a daily rate of $14.96 per day. If the mum's income was greater than $52,036, then the fee would be 50 per centof the income in excess of $52,036 capped at a daily rate of $29.92 per day. A lifetime cap applies to income tested fees which is indexed and is currently $65,357.
Whilst the basic daily care fee is not means tested, there are a range of financial planning strategies that can be adopted to reduce the impact of the income tested fees. An HCP fee estimator and further information can be found on HCP can be found at myagedcare.gov.au
- Before making a change you should check your HCP agreement to check if there are any special conditions such as notice periods and exit amounts.
- You can search for alternative providers by using the My Aged Care website service finder or speak with My Aged Care on 1800 200 422 for assistance.
- Compare the services and fees provided with those of your current provider including administration and case management.
- Your current service provider are obliged to assist you to change providers and you must mutually agree to a date you want your care and services to end.
- When you have agreed an end date with your current provider, contact My Aged Care and re-activate your referral code. You have 56 days from the end date to enter into a Home Care Agreement with a new provider. If you do not enter into a Home Care Agreement by this time, your home care package will be withdrawn and you will not be able to use your referral code.
This story first appeared on wealthpartners.net.au. Any general advice in this story doesn't take account of personal objectives, financial situation and needs.