Aged Care Fees & Charges – how to pay for aged care
Residential Aged Care providers vary offering different services, room configurations, amenities and as a result pricing. If you are just starting out on the aged care journey you will be on a steep learning curve as there is much to consider, with the financial aspect one of many to think about when finding a new home for yourself or loved one.
How much you pay for aged care depends on the type of care you are approved for, the provider, how much you can afford and the additional services that you choose to receive at the facility.
Applying for government subsidised aged care services
There are three parts to applying for aged care services. The first two parts are completed via the My Aged Care system and are around the health of the individual. You will first complete an application form and then the individual is assessed. Eligibility is based on need and the type of care you receive and/or would like to receive ie home care or residential care is discussed at a face to face interview.
The third part of the process is to do with finances and through an Assets and Income Assessment you will know if you can receive help to pay for aged care and how much you need to pay. The ‘Aged Care Calculation of your cost of care form (SA486) is completed via Services Australia.
Once you have been assessed you will be issued an Aged Care User ID/referral code which keeps details of your assessed health needs and the services that have been provided to you all in one place.
So once you have been approved for Residential Aged Care and have received a letter from Centrelink confirming the outcome of your financial assessment, what else is there to know about entering the residential aged care system?
Fees and charges (Subsidies and Supplements)
There are 2 types of fees and charges payable when entering into residential aged care.
These are split into Resident Fees and Accommodation Payment and Contributions.
Resident Fees
Resident Fees are applicable from date of entry and are charged on a daily basis.
These are:
- Basic Daily Care Fee
All residents will be asked pay the basic daily fee. This fee covers the day-to-day living costs of residents such as accommodation, meals, care and hospitality services. This fee is set by the government and is based on approximately 85% of the single Australian Aged Pension.
- Means Tested Care Fee
The Means Tested Care Fee is based on the outcome of an Assets and Income assessment and is a dollar amount a resident may be asked to contribute towards their care. If the Means Tested Care Fee is applicable there is an annual amount and lifetime amount capped. The cap is indexed and the daily charge will change every quarter.
Accommodation Payment and Contributions
In addition, depending on the outcome of your Asset and Income assessment if you have sufficient assets and income you will be asked to pay, either a Refundable Accommodation Deposit (RAD) or Accommodation Charge (AC).
- If assessed assets are above $173075.20 then the agreed room price is the refundable accommodation deposit (RAD) and there are 3 different payment options available.
- If assessed assets are between $51000-$173065.20 an accommodation contribution is to be paid and there are 3 payment options available.
- If assessed assets are below $51,000 the RAD/AC doesn’t apply.
Additional Service fees
In government subsidised residential care, only care, meals, laundry and accommodation is covered by the supplement received by the service provider, however many aged care facilities offer additional services to enhance the lifestyle of residents. This additional service could cover things like social outings, cultural activities, newspapers, wine at meal time, art classes, bus trips and entertainers. Additional service offerings really depends on the facility and interests of the residents. At Maroba we have the Maroba Advantage. You can find out here what that includes.
For more information on Maroba’s rooms and our fees and charges, please navigate to our Residential Care page here.
Alternatively, please contact us and ask to speak to our Customer Engagement Partner.
By Sarah Gamble, Communications Co-ordinator