A resident paid a 2.1 million bond. Is that fair?
Posted by
We Coach Wealth
on Thursday, November 15, 2012
Mark Butler the Federal Aged care minister this week stated that he knew of a resident in Sydney who paid a 2.1 million bond to an aged care facility.
He then asks ‘is that fair?
It certainly doesn’t sound fair -in fact it sounds usurious as it was meant to do.
What are these bonds that he is describing?
They are accommodation bonds that residents may have to pay when they move into an aged care facility.
We note from the 6 page document provided by the Department of Health & Aging that
‘ Residents requiring low care or entering an extra service place (at high or low level care) may be asked to pay an accommodation bond’
Yes Mark the bond as you know is a requirement and
‘ Whether a resident requires high care is determined at the time of entry to a permanent place by the evidence available at that time. Relevant evidence may include the assessment by an Aged Care Assessment Team, assessment by the aged care home if the person has been receiving respite care, and other evidence such as doctors' or hospital records.’
Yes. the government assesses the resident under ACAT.
So let’s from the document also add
An accommodation bond (bond) is an amount a resident may be asked to pay when they require low care or enter an extra service place. A bond is paid to an Australian Government subsidised aged care provider called an approved provider. The approved provider is the organisation that owns and operates an aged care home.
A bond is like an interest free loan to the approved provider and, for a bond charged on or after 1 October 2011, by law must only be used for permitted uses. These permitted uses include: capital expenditure, refunding bonds, refunding debt accrued for capital expenditure and refunds, investment in particular financial products and loans for capital works or investment in particular financial products.
A transition period to allow approved providers to prepare to comply with the permitted uses will operate until 30 September 2013. An approved provider may operate more than one aged care home and bonds can be used for capital works at any of their aged care homes.
A bond can only be charged for entry to an aged care home that is certified as meeting minimum building and care standards. Information on a home's certification status can be found on the Department of Health and Ageing's (the Department) website at www.health.gov.au or by calling 1800 200 422*.
An approved provider is allowed to deduct monthly amounts, called retention amounts, from a bond for up to five years. The Australian Government sets the maximum retention amount. For the current maximum retention amount see the Department’s website at www.health.gov.au or call 1800 200 422*.
The bond balance (i.e. the bond minus retention amounts and any other allowable deductions) must be refunded to the resident or their estate within specified timeframes when they leave the aged care home.
Yes Mark the facility must refund the monies minus 19,380* generally to the estate within 14 days of probate.
Mark we would argue that this was as defined where you spoke as a ‘<b>sin of omission.’
It was mentioned more than once at the meeting that there would be ‘no scaremongering’.
What is it then when the intimation was there?
Mark also stated that an aged care facility asks all about your assets on application to a aged care facility.
He compared it to the shop keeper asking you ‘what is the credit card limit before you buy’.
Yes you have a choice to have the provider or the government ask you those questions.
Helen who was here on Saturday stated ‘they even want to know the colour of my underwear’when discussing filling out a Centrelink disability application.
She is so unhappy with the government that she even carries her passport in her handbag.
That is a new one for us.
Who would you prefer & just maybe it would be better for you to see us before you see either.
How much bond may a resident pay?
There is no fixed amount for a bond. The amount of the bond is to be agreed between a resident and the approved provider.
Bond sizes can vary widely between residents in an aged care home as well as between homes, even in the same locality. A resident cannot be charged a bond which would leave them with less than 2.25 times the basic aged pension amount. This is called the minimum permissible asset value.
This value is currently 41,500.
For the full 6 page document you can go to the Department of Health & Aging or email us for it as all government sites almost need a licence to navigate them.
Nikki wrote 3 weekends ago in the Week Australian ‘taking charge’ about her 99 ‘Nan’ who ‘did not go gentle’ into a nursing home. Nan says’ there’s no dignity in getting old ,Nik.’
Nikki summarises the event as ‘that extreme stress, at any age, is caused by a lack of control’.
It is very often the event is urgent & you need advice within 3 days & hence early advice means more control.
Who knows, Just maybe a 2.1million bond might be right for you.
We must also thank to local MP Graham for inviting us there. We wanted to ask Mark the question “is the accommodation bond paid to the estate ‘ or ‘What happens to the accommodation bond?’ but they both had to go as ‘the Boss’ [their words] was in town.
We thought ‘the Boss’ was the voter who turned up today to listen & heard everyone else. However, thanx Graham.
Also we must congratulate Jackie who works for some government department who spoke at the meeting of ‘for all the bad stories you hear of in aged care there are many more good & happy ones.’
Our tec. David wrote today ‘Thanks John, You’re a champion. Regarding Dad’s do you think we have done enough or the right thing placing him at Bulimba? Respect your thoughts & opinions, David
We replied ‘David its where we would go ourselves Well done’
Not that we are in a rush as we have to walk the daughter up the aisle first.
You may find you have some control when you know more & you are welcome to call us on 07 3848 1088 or email us or visit our websites.
>John McAuliffe
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