THE INCREASING CHOICE IN HOME CARE REFORMS - TIPS FOR CONSUMERS

Greg Milner LLB (with Distinction), B.Com

(Disclosure: The author has recently accepted a Board traineeship with a Manning-based home care provider.)

© Greg Milner 2017

According to the Commonwealth of Australia’s 2015 Intergenerational Report: (a) the number of people aged 65+ will more than double from 3.6 million people 15% of the population) to 8.9 million (23%) by 2055; (b) the highest growth rate of all age groups will be for people aged 85 years and over, almost quadrupling from 500,000 in 2015, to 2 million by 2055; and (c) In 2015: * only 7% of Australians over the age of 65 live in residential aged care; * 68% lived at home without accessing Government subsidised aged care services; * 25% lived at home with some Government subsidised aged care services.

THE INCREASING CHOICE IN HOME CARE REFORMS: WHY HOME CARE?

© Greg Milner 2017

Home care is better for the consumer: It allows consumers to continue to live in their own home, rather than move into residential aged care. Home care is better for the taxpayer: It is (generally) cheaper to provider a home care package than subsidise a residential aged care bed. Home care is central to the Federal Government’s strategy for meeting the challenges of an aging population. The Increasing Choice in Home Care reforms took effect on 27 February 2017. So, what changed on 27 February 2017?

THE INCREASING CHOICE IN HOME CARE REFORMS: WHY HOME CARE?

© Greg Milner 2017

Home care packages are now issued to the consumer, not the provider.

Providers are now competing for your business.

You are free to switch providers, if you wish (subject to an agreed exit fee).

Providers should be brokering the services you want.

You are not limited to spending your budget on services only – your budget can also be

applied towards capital goods that assist you to remain living at home.

Essentially, consumers hold far more bargaining power than they ever did before.

THE INCREASING CHOICE IN HOME CARE REFORMS: WHAT DOES IT MEAN FOR YOU?

© Greg Milner 2017

The West Australian, 27 March 2017

The West Australian, 17 April 2017

Get in the “national queue” ASAP. Estimated wait time to receive a home care package is presently unknown

Federal Government is dragging its feet in releasing the data

Anecdotal evidence suggests wait times are considerable

THE INCREASING CHOICE IN HOME CARE REFORMS: TIPS FOR NAVIGATING THE NEW SYSTEM

The West Australian, 14 August 2017

© Greg Milner 2017

Find the service provider that’s right for you. Don’t be afraid to shop around! Location – can your service provider get to you quickly?

Services offered – do they meet your needs?

Additional services that can be brokered – if you require a service that the provider doesn’t normally offer, they should be willing to engage a third party on your behalf

Value for money – get the most out of your budget, but remember that “cheap” isn’t always “good”.

Reputation – there are a lot of new players entering the market following 27 February 2017. How long has the provider you’re considering been operating? Are their clients happy?

THE INCREASING CHOICE IN HOME CARE REFORMS: TIPS FOR NAVIGATING THE NEW SYSTEM

© Greg Milner 2017

Understand your budget. Your home care budget will consist of: the government subsidy * Level 1 home care package – (about) $8,054 * Level 2 home care package - (about) $14,633 * Level 3 home care package - (about) $32,171 * Level 4 home care package - (about) $48,906

the “basic daily care fee” (usually payable by the consumer)

* 17.5% of the single rate of the basic age pension = $10.10 per day. an income-tested care fee – paid by those assessed as having sufficient income to contribute. It reduces the amount of the subsidy paid by the Government to the provider.

THE INCREASING CHOICE IN HOME CARE REFORMS: TIPS FOR NAVIGATING THE NEW SYSTEM

© Greg Milner 2017

Understand the fees that you will (or may) be obliged to pay. An Aged Care Financing Authority survey of 370 providers found that: Over 50% of providers are charging less than the maximum “basic daily care fee”. 22% of providers are not charging “basic daily care fee” at all. 17% of providers were not collecting the income-tested care fee.

Are “administration” and “case management” fees payable separately, or are they included in the services fees? What do the services fees entitle you to? What if you require additional time/services? What is “time-banding”? What are “exit fees”?

THE INCREASING CHOICE IN HOME CARE REFORMS: TIPS FOR NAVIGATING THE NEW SYSTEM

© Greg Milner 2017

Consider how to get the best value-for-money for your home care budget. Not just shopping around between providers for the best providers - it also means getting smart with what services you obtain. Example: For mobility-impaired consumers, instead of paying an hourly rate for carer assistance with grocery shopping every week, consider requesting your provider to assist you to obtain an iPad (and arrange training, if needed) so that you can conduct your grocery shopping online.

Taking advantage of assistive technology can potentially lead to your home care budget stretching much further in the long run.

THE INCREASING CHOICE IN HOME CARE REFORMS: GETTING SMART WITH YOUR BUDGET

© Greg Milner 2017

Consumers will access this website looking for service providers

Understand how the website works to maximise consumer interest

Pre-reform Post-reform

The home care package is issued to...

The home care service provider. The consumer.

Home care service providers obtain business by...

Application to the Federal Government through the Aged Care Approvals Round (ACAR).

Attracting consumers in an open market, in competition with other providers.

If a consumer wants services the provider doesn’t perform...

The consumer is limited to the services the provider directly performs, or is willing to broker on behalf of the consumer.

Either the provider brokers the additional services from a third party, or the consumer finds another provider that will.

If a consumer needs to switch provider...

The package funding stays with the provider and the consumer must obtain a new home care package from the new provider.

The package funding follows the consumer to the new provider.

THE INCREASING CHOICE IN HOME CARE REFORMS: SUMMARY OF EFFECTS

© Greg Milner 2017

Greg Milner LLB (with Distinction), B.Com

gregsmilner@gmail.com LinkedIn profile: https://au.linkedin.com/in/greg-milner-30797939

THE INCREASING CHOICE IN HOME CARE REFORMS: QUESTION AND ANSWER SESSION

© Greg Milner 2017