We attended
an open day recently at a brand new state of the art Aged Care facility. Yes
you would describe it as 5 star *****.
Nikki Gemmell wrote in W.E. Australian 2/3/13 100
Not out a very reassuring article on
her Nan who ‘At her 100th birthday party she looked healthy,
engaged, chuffed’.
If you have
ever stayed or dined at a five star hotel or resort then you may find as we did recently for a
birthday dinner that you suffer from ‘Bill
Shock’.
We were
provided a guided tour along with a couple who were planning ahead. It is state
of the art although Lex asked if Wi-Fi
was available & it will be but not today. Maybe a brickbat as the hotel reviewers
would say. Probably the only one.
We
completed the tour & then to the facility folder with the details.
There was
the Accommodation Bond which we have
explained before & remember it is refunded to the estate minus a maximum of $19,380. They weren’t small
& recall you must be left to 41,500.
Bonds vary
according to whether you want or need a shared or single room.
However as
they say ‘and there is more’. There are daily charges as well.
1.
If
you are ‘ defined’ medically by ACAT
& enter high-level
care then you may be asked to pay an ongoing accommodation charge instead
of an accommodation bond.
As with the bond, each charge is negotiated individually taking
into consideration the person’s assets at the time of entry.
Residents with less than
$41,500 in assets will not pay the charge. Residents
with more than $109,641 in assets will pay the maximum charge which is
currently $32.76 per day.
Residents who pay a charge can rent out their former family home and it
will remain indefinitely exempt from the social security assets test. In addition, the rental income will
not count towards the social security income test or the income-tested fee .
2. Basic daily fee
The basic daily fee is paid
by all residents as a contribution towards the costs of daily living such as
meals, cleaning, laundry and heating.
Standard residents [Full
pensioners and part pensioners ]currently
pay $43.22 per day which is 85 per cent of the annual single rate of
the basic age pension.
Income-tested fee
A resident may be asked to pay an income-tested fee in
addition to the basic daily fee.
The Department of Health
and Ageing determines the fee each quarter, based on the person’s income
information as obtained from Centrelink or the Department of Veterans Affairs.
Income as assessed by social security as well as social security
benefits are counted when calculating the fee.
If you are a standard resident & earn additional income over $31.31 per day you will pay an income-tested fee until the maximum fee of
$68.65 per day is reached.
3. Extra service fee
The facility offered an extra service fee instead
of an accommodation charge which was
$54.85 per day. The
facility sets the fee, which must be approved by the Department of Health and
Ageing and varies from one facility to another depending on the services being
provided.
This enables residents to
enjoy a significantly higher standard of ‘hotel-type’
extras in accommodation, food and services. Hence the 5 star *****.
If you aren’t aware of
these daily fees then you have an !! moment.
As the manager
explained & as occurred with our
client ‘William’ recently the need for aged care can be
in a moment & often due to a stroke. Maybe it is a fall as Nan becomes frail
over time.
Often decisions are not
made by the person entering aged care, but by family and others, and often
under pressure.
If these charges are a problem then they all depend on income &
asset testing under both Centrelink & aged care rules. The problem occurs if
& when the house is sold & funds are deposited in the bank.
If Nan has more income &
assets then Nan reduces her pension & other benefits.
Also to help all concerned please ensure your will & an Enduring
Power of attorney is up to date & in fact done.
John McAuliffe
