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Aged Care Reform affects Aged Care Costs

June 25, 2014 0 Comments

As the new aged care reform takes effect next month, aged care costs across the Mornington Peninsula, and across Australia, are expected to rise.

The national Living Longer Living Better aged care reform has been introduced to communities by local groups and organisations.

How does the Aged Care Reform Affect Aged Care Costs

Chris Hill of Hill Legal said that these aged care reforms will significantly affect residents of aged care homes, with increases of up to 50% in user-pay fees.

Aged care providers, on the other hand, say that there will be even more options than before for residents, while still maintaining a safety net for those vulnerable. Hill said, “The key issue is for people to start planning.”

“You need to be aware the costs of aged care are increasing because of an ageing population and we’re moving to a user-pay system,” he added. Hill also mentioned that changes to accommodation bonds will be another factor that’ll drive fees up the wall.

Peter Nilsson, Village Glen Retirement Village general manager, says that he expects fees to increase in all locally-based aged care homes as a result of Living Longer, Living Better.

Nilsson said, “Everyone is going to get more choice, there is going to be more transparency and there’s going to be more costs for some.”

“There is a safety net there for those who don’t have the capacity to pay will not be required to, and they will get no lesser service.”

Michael O’Neill, chief executive of National Seniors Australia, states that these aged care reforms are long overdue. “The system that we’ve had to date for the past decade or more was clearly not delivering and incapable of delivering the kind of demand there will be in the future.”

“We accept that there is a need for a co-contribution when people can afford to do so. Time will test how well consumer-directed care will be,” he finished.

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