Simplifying aged care accommodation payment rules a welcome move

The Federal Government’s decision to let aged care residents pay for their accommodation by lump sum while their means assessment is finalised is a sensible and welcome change that reduces complexity for residents, families and services, Catholic Health Australia said.

Under the Aged Care Act as it commenced, residents whose means assessment was still pending could only pay for their accommodation through daily payments, even when they were ready and able to pay a lump sum.

“This rule caused confusion for residents and families at an already stressful time, added to their costs and put cashflow pressure on the services caring for them,” said Alex Lynch, Director of Aged and Community Care at Catholic Health Australia.

“Catholic providers saw the impact first-hand and led the advocacy for a solution. We thank the Government and the Minister for Aged Care and Seniors, The Hon Sam Rae MP, for their considered engagement, and for adopting this solution.”

CHA raised the issue with the Department and the Minister’s office earlier this year on behalf of members, and offered potential solutions.

The Government has responded through an amendment introduced last week. Residents will be able to choose a refundable accommodation deposit (RAD), a daily accommodation payment (DAP) or a combination of both while their means assessment is completed.

Two consumer protections remain in place, with interim payments capped at the agreed accommodation price and providers will be required to refund any overpayment if a resident is later assessed as low means.

“These safeguards are sensible and give residents confidence that choosing to pay a lump sum early will never leave them out of pocket,” said Mr Lynch.

The change is expected to be in place by the end of October.

“Catholic providers’ experience on the ground, combined with effective advocacy, has translated directly into legislative change,” said Mr Lynch. “We thank our member providers who brought this issue to us, and the Government for working collaboratively on an effective solution.”