Changes to stop home care overcharging
Home care fees are the bane of many seniors’ lives. Here is what is happening to ensure you get more of the services you need.
Key points
- Cap on home management fees and home care package management fees apply from 1 January.
- Reform was recommended by the aged care royal commission.
- Some people are paying up to 50 per cent of their Home Care Package as fees.
The Federal Government has moved to cap home care and home care package management fees and has banned all exit fees as well as brokerage and subcontracting fees.
As of 1 January next year, home care management fees are capped at 20 per cent and package management fees at 15 per cent.
The legislative reform was recommended by the Aged Care Royal Commission and followed complaints that some providers were overcharging clients and billing for unnecessary fees to lift profits.
"Some older Australians have been paying up to 50 per cent of their Home Care Package as administration and management fees. That is not affordable or sustainable and is simply wrong," said National Seniors Australia Chief Executive Professor John McCallum.
“We believe excessive fees restrict people’s access to services, compromising their well-being and safety at home and leading to premature entry into residential aged care.
”The caps set the maximum amount a provider can charge.
They are not the target price for these services or an indicator of what is considered a ‘reasonable’ price.
The government will consider the need for additional or lower caps as it monitors Home Care Package prices in 2023.
In further changes, providers cannot charge for package management in a calendar month where no services (other than care management) are delivered except for the first month of care. Providers cannot charge separately for third-party services, and they cannot charge exit fees.
National Seniors Australia welcomes the reform as a much-needed first step in reigning in excessive charges and in giving protection to older Australians as they wait for future reforms to set home care prices.
It is critical the government monitors the implementation and performance of the reforms over time.
The concern is some providers may try to recoup lost profits by increasing the hourly rate charged for services. Under the changes, caps apply only to package and care management fees, not hourly rates.
Those with Home Care Packages should be on the lookout for this behaviour and be prepared to shop around and move to other providers.
However, National Seniors is also concerned that care recipients living in areas where there are few providers may have limited ability to move to another provider.
Under changes to home care from 1 July 2024, the Federal Government will combine home care services into a new streamlined Support at Home program. Under the proposed model, home care prices will be set by the government.
National Seniors Australia has been working with the government to improve our aged care system and continues to provide feedback throughout the reform process to ensure the new system benefits care recipients.
Responding to the reforms, CEO of Aged & Community Care Providers Association Tom Symondson said: “Whilst most home care providers will not be captured by these changes, as they already charge less than the caps, these reforms will give older people who stay at home the confidence of knowing that the bulk of their home care package is going towards meeting their personal needs.”
