Difficulty in navigating aged care system

Mr Carr said funding and locating the right level of residential care is not only becoming an issue for seniors but also Victorian families looking after the interests of older relatives.

“It is important Victorians understand the fees associated with residential aged care and recent reforms introduced by the Government,” Mr Carr said.

“Victorian seniors entering residential aged care can expect to be charged various fees including a basic daily fee, means-tested care fee, accommodation payment fee and fees for extra or additional optional services.”

A basic daily fee covers living costs such as meals, power and laundry. A means-tested care fee is an additional contribution towards the cost of care some people may be required to pay.

An accommodation payment is charged for accommodation in the residential service.

Some people will have their accommodation costs met in full or part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care provider. Fees for extra or additional optional services may apply if residents want additional services.

Mr Carr said Victorian seniors entering residential aged care need to be aware of changes introduced in 2014.

Aged care reforms introduced in 2014 include:

• Removal of low care and high care distinction in permanent residential aged care;
• Setting and publishing accommodation prices;
• Residents will have a choice how to pay their accommodation;
• Resident will have 28 days to choose how to pay their accommodation;
• Means testing in residential care; and
• Accommodation Supplement.

“All residential aged care homes are required to publish their maximum accommodation prices and descriptive information of the key features and standards of their rooms,” Mr Carr said.

New residents have a choice of paying for their accommodation as a refundable lump sum (known as a refundable accommodation deposit or RAD); an equivalent daily payment (known as a daily accommodation payment or DAP); or a combination of the two.

Mr Carr said a new resident will have up to 28 days from entering residential aged care to choose whether to pay the agreed accommodation price by a RAD or DAP or some combination of both.

“The daily accommodation payment is paid unless and until a refundable accommodation deposit is paid, daily payments are not required more than one month in advance,” Mr Carr said.

To further assist in navigating the aged care system, order a copy of the DPS Guide to Aged Care or view the Residential Aged Care information pages on the DPS Guide website.