Figure 1: Change in accommodation payment arrangements Pre–1 July 2014 At 30 June 2014 From 1 July 2014 Non–supported residents 174,000 permanent Non–supported residents Paid by Accommodation Bonds residents: All incoming residents pay under the same Residents enter either Low care and 104,000 (approx 60%) accommodation payment arrangements. non–supported Providers set maximum accommodation price care 73,000 (approx 42%) Prices over $550,000 ($99.90 per day) to be Price capped at total assets of resident less Bond payers agreed by Aged Care Pricing Commissioner. minimum asset amount. $15.4 billion (approx) Provider and resident agree accommodation price Can be paid by lump sum, periodic payment, or bond pool at entry (not related to resident’s assets). combination method agreed before entry. – The average Resident has 28 days to decide method of A retention amount of up to $331 per month for accommodation bond payment. Options are: up to five years agreed with a new Refundable Accommodation Deposit (RAD); Paid by Accommodation Charge resident in 2013–14 was Daily Accommodation Payment (DAP); or Residents non–extra service high care $296,404 A combination of DAP/RAD (with resident Periodic payment only 47,000 (approx 27%) determining the proportional Price set by regulation capped at $34.20 per non–supported No regulated retention however residents paying by day residents paying by combination can agree to a non–refundable DAP accommodation charge component being drawn from RAD. (supported & Supported residents Supported residents turn–over of The asset test restricted the amount that a supported All incoming residents pay under the around 5,000 residents per resident could be asked to pay with the Government same accommodation contribution arrangements. month with around 3,000 topping this up with an accommodation supplement. The provider receives the same amount for all per month being The accommodation payment methods were residents when accommodation contribution and supported residents. accommodation bonds for partially–supported people accommodation supplement are together. entering low care and an accommodation charge for those partially–supported people entering high care. Providers of new or significantly refurbished facilities are Government contribution capped at $34.20 per day. eligible for payment for accommodation at the same level as the higher accommodation supplement ($53.04 per day).
Figure 1: Change in accommodation payment arrangements Pre–1 July 2014 At 30 June 2014 From 1 July 2014 Non–supported residents Paid by Accommodation Bonds Residents enter either Low care and care Price capped at total assets of resident less minimum asset amount. Can be paid by lump sum, periodic payment, or combination – method agreed before entry. A retention amount of up to $331 per month for up to five years Paid by Accommodation Charge Residents non–extra service high care Periodic payment only Price set by regulation capped at $34.20 per day 174,000 permanent residents: 104,000 (approx 60%) non–supported 73,000 (approx 42%) Bond payers $15.4 billion (approx) bond pool The average accommodation bond agreed with a new resident in 2013–14 was $296,404 47,000 (approx 27%) non–supported residents paying by accommodation charge (supported & turn–over of around 5,000 residents per month with around 3,000 per month being residents. Non–supported residents All incoming residents pay under the same accommodation payment arrangements. Providers set maximum accommodation price Prices over $550,000 ($99.90 per day) to be agreed by Aged Care Pricing Commissioner. Provider and resident agree accommodation price at entry (not related to resident’s assets). Resident has 28 days to decide method of payment. Options are: Refundable Accommodation Deposit (RAD); Daily Accommodation Payment (DAP); or A combination of DAP/RAD (with resident determining the proportional No regulated retention however residents paying by combination can agree to a non–refundable DAP component being drawn from RAD. Supported residents The asset test restricted the amount that a supported resident could be asked to pay with the Government topping this up with an accommodation supplement. The accommodation payment methods were accommodation bonds for partially–supported people entering low care and an accommodation charge for those partially–supported people entering high care. Government contribution capped at $34.20 per day. Supported residents All incoming supported residents pay under the same accommodation contribution arrangements. The provider receives the same amount for all residents when accommodation contribution and accommodation supplement are together. Providers of new or significantly refurbished facilities are eligible for payment for accommodation at the same level as the higher accommodation supplement ($53.04 per day).
reform_monitoring_dec_2015_report_2.docx