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 What Reforms?

 Changes to legislation  Home Care Packages Programme  New supplements  MyAgedCare and call centre  Australian Aged Care Quality Agency  Aged Care Pricing Commissioner Achievements

2015 Increased functionality – MyAgedCare Commonwealth Home Support CDC for all Home Care Packages 2014 Accommodation prices published on MyAgedCare Changes to fees and subsidies Removal of high/low Reforms going forward

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. High Care and Low Care

 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 Conditions of allocation

No distinction between high and low approvals Approvals will not lapse Care approvals

ACFI How do we classify residents?

Check your resident agreements Remove ‘low care’ and ‘high care’ references Ageing in place

No Change to Residential Respite

 Proposed modernisation of items  Classifications that can be charged a fee for Part 3  Additional care and services Schedule of Specified 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 orMy Aged Care website Call * 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 * and ask for *, If you need an interpreter, we can help through the Translating and Interpreting Service. Call and ask for *. *1800 calls are free from fixed lines; however, calls from mobiles may be charged.

Ongoing updates are available at: My Aged Care website My Aged Care website Department of Social Services website: Department of Social Services website: More information….

Aged Care Reforms – Home Care May 2014

1 July 2014 Income testing for home care 1 July 2015 All Home Care Packages convert to CDC Key Milestones

Consumers can continue to be asked to pay a basic fee Some consumers can be asked to pay an income- tested 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 Income testing in Home Care

84% equates to approx $1.2 billion and 16% equates to approx $0.2 billion, based on 2013/14 data. Home care – Government subsidy Vs. Client contributions

Home Care income thresholds and caps Single person, March 2014 prices (current rates)

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 – Safeguards

Worked examples March 2014 prices Home Care

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, (*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. Income test Income tested care fee $0. The Government will meet the full cost of Rose’s care. 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 1 - Rose

Total assessable income: $65,000 p.a. Income free area: $24, Total assessable income > income free area: Joseph can be asked to pay an income tested care fee. Joseph’s package costs: $37.38 per day Income tested care fee Joseph’s income tested care fee will be the lower of: $27.47 per day (being the daily calculation of the $10,000 annual cap) or His care costs ($37.38); Joseph can be asked to pay a maximum of $27.47 per day. Basic fee $3,483 per year + Joseph’s income is above the upper cap threshold of $57,882 so $10,000 cap applies. Worked example 2 - Joseph

My Aged Care website ( or * My Aged Care website Ongoing updates available at the Department’s website ( Ongoing updates available questions to * 1800 calls are free from fixed lines; however, calls from mobiles may be charged. For more information

Aged Care Reforms – Residential Care May 2014

Key Milestones Overview of new fee arrangements New means testing arrangements Accommodation Payments Safeguards for Residents Examples of the new fee arrangements Overview

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. Key Milestones

Basic Fee Means Tested Care Fee Accommodation Extra Services Fee Additional Services Fee Residential Care Fees from 1 July 2014

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 Means Testing in Residential Care

Grandparenting arrangements Annual and lifetime caps Annual cap of $25,000 Lifetime cap of $60,000 Safeguards on the family home Financial Hardship Assistance Safeguards for Residents

Subsidies and Fees from 1 July 2014

Lower Means Higher Means Moderate Means Pays basic daily fee Pays Accommodation Payment (no supplement) Pays Means Tested Care Fee – care is partially subsidised Pays Basic daily fee Pays Accommodation Contribution (receives some Accommodation Supplement) Does not pay Means Tested Care Fee – care is fully subsidised Pays basic daily fee only Receives full Accommodation Supplement Does not pay Means Tested Care Fee – care is fully subsidised New Residents from 1 July 2014 $154,179 $45,000 $24,731$62,944

Choice of Payment Method Refundable Accommodation Deposit or Daily Accommodation Payment Combination of Both Fairer Assessment of Capacity to Pay. Accommodation Costs – 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 Accommodation prices– What’s New?

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

Means Tested Amount =$ Means Tested Amount =$ 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, / 364 Asset tested amount = $ 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, / 364 Asset tested amount = $ Total assessable income: $65,000 Income free area: $24, Therefore: = 50% × ($65,000 - $24,731.20) / 364 = $55.31 Income tested amount = $55.31 Total assessable income: $65,000 Income free area: $24, Therefore: = 50% × ($65,000 - $24,731.20) / 364 = $55.31 Income tested amount = $55.31 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 $ up to $25,000 p.a $ $52.49 = $ Basic daily fee $46.50 per day + + Peter

My Aged Care website ( or * My Aged Care website Ongoing updates available at the Department’s website ( Ongoing updates available Transitional Business Advisory Service on or by visiting the website at Transitional Business Advisory Service * 1800 calls are free from fixed lines; however, calls from mobiles may be charged. For more information:

For information about aged care services, and how to access them: Visit the My Aged Care website at orMy Aged Care website Call * 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 * and ask for *, If you need an interpreter, we can help through the Translating and Interpreting Service. Call and ask for *. *1800 calls are free from fixed lines; however, calls from mobiles may be charged. My Aged Care