It can be easy to underestimate how many fees are involved when examining nursing home costs across the aged care industry.
Thanks to innovation and expansion within the industry, there are higher levels of service that retirees can access once they deem these facilities suitable for their needs.
Yet with any increase in quality will come with raised rates and fees to factor into the equation.
Time to crunch the numbers and assess the important calculations to consider for those examining the nursing home costs involved for the transition.
The target of the means-tested fees is to run a comprehensive assessment for an individual to see how much of their income can be applied to their nursing home costs without subsidies. As of March 20, 2019, the price cap listed on this fee was $27,532.59. This is a domain that requires an eye for detail and specialty care, seeing recipients have their investment portfolio run through peaks and troughs that affects their capacity to fund their level of care. By taking note of property prices and alterations in the share market, these practitioners can ensure that the services are appropriately covered.
The Basic Daily Fee
Despite the many ups and downs that occur through the means-tests with nursing home costs, the basic daily fee is a permanent fixture for participants. The average fee for a basic aged pensioner across a fortnight in 2019 is listed at $843.60, working out to approximately $60.25 per day. Fortunately there are government subsidies that lower this price to approximately $51 per day for most recipients. This is to cover a series of expenses that the facility has to cover for their clients, ranging from the heating and cooling of rooms to personal assistance, pharmaceutical services, meals and beverages, washing laundry and preparation of rooms.
The threshold for accommodation payments is listed at $49,500 in 2019. For those participants that are below that level for income and assets, they do not need to include it as part of their nursing home costs. There are different payment options that fit within this domain. On one hand there is the Daily Accommodation Payment or DAP for short. This offers an agreement commensurate with paying rent on a non-refundable basis. Then there is the single payment model designated via the Refundable Accommodation Payment. Operating as more of a loan scheme, this system works to deduct key costs and return the sum once the individual has left the home.
Calculating Extra Services
While these initial programs are part and parcel of a regulation service, there are extras that can be included depending on the desires and necessities of the client. Nursing home costs can also feature a number of other luxuries and extras, but they can come at a premium. From satellite television and internet access to spacious rooms complete with prestigious furnishings, bedding, variety of boutique beverages, therapy sessions and more – this is a transition that can feel like a resort more than an aged care facility if it can be afforded. This is where the client needs to check with the outlet and see if this is an affordable and sustainable package.
Assistance Managing These Costs
Aged care financial planning operators exist in the market for this very instance when retirees have to make their calculations and manage expectations for nursing home costs. There will be some policy measures and alterations to agreements that are out of their control when a new fee alteration rolls over to the next period, forcing an assessment of the payment structure. Those who do find difficulty managing these costs can access financial hardship assistance from the federal government to subsidise the increases, pending an application process.