Post-election action plan for aged care

Aged care consumers have been ignored this election campaign but there will be significant consequences of ignoring aged care after the election, says LASA, which has outlined four key priorities for the next government to action within 100 days.

 

Patrick Reid, CEO of Leading Age Services Australia, says government cannot not afford to ignore aged care

Provider peak body Leading Age Services Australia has launched an action plan outlining four areas for government to address in the first 100 days of the new parliament for whoever wins the right to lead after Saturday’s election.

In its election manifesto, LASA is calling on the next elected government to scrap the means test for residential aged care bonds on day one, announce a cost-of-care study by day 15, equalise cap calculations across home and residential care within a month, and improve the annual funding process in the first 100 days.

The needs of aged service consumers have largely been ignored in this election campaign with few announcements or policies, but there will be significant consequences of ignoring age services after the election, said Patrick Reid, LASA CEO.

“While this issue may be currently seen as a sleeping giant, without attention it has the capacity to put incredible pressure on an incoming government,” Mr Reid said.

“Australians young and old need to hear from our leaders as to how they will provide adequate funding to ensure high quality services and equity of access to allow older Australians to live well.”

These top four issues, as outlined by LASA in its “age services manifesto”, must be undertaken by a new government to ensure providers are supported to operate and minimise uncertainty during the period of change, Mr Reid said.

Action plan summary

Day 1: Scrap the Means Testing of Residential Accommodation Deposits (RAD)

Consumers who choose fund their Residential Accommodation Deposit (RAD) through the sale of their home will have the RAD amount included in their means test. This will adversely impact someone of modest means and consequently drive a loss of value for the consumer and put pressure on an already stressed care sector, LASA said in the manifesto.

Day 15: Announce a cost-of-care study to ensure funding matches the true cost of quality care

The Productivity Commission advocated for it and the industry, through the National Aged Care Alliance and its individual members, has consistently been calling for a cost of care study to identify the true cost of care. “We call on the incoming government to be brave and not fear looking at a cost-of-care study,” LASA said in its election document.

Day 30: Equalise the annual cap calculation for home and residential care

As of 1 July next year, older Australians receiving home care will have their co-payment care costs averaged throughout the year whereas people in a residential aged care facility must pay all of their care costs through co-payments until they reach the annual cap. This is inequitable, drives up a residential aged care recipient’s co-payment and adds unnecessary complexity to the process, according to LASA in its manifesto.

Day 100: Commit to improve the Aged Care Approvals Round (ACAR) process

LASA said the next government needs to move away from the rationed system of care and to one that guarantees an older Australian’s right to aged services.The manifesto highlights that in the latest Aged Care Approvals Round (ACAR) announced in July, the department received 106,000 applications for consumer directed care packages to be delivered to older Australians in their home for 5835 places. The current process makes access to home care “a game of chance” for consumers, LASA said in the document.

Elsewhere in the manifesto, LASA is calling on the government to allow providers to set their own accommodation pricing structure in line with market forces; repeal the Workforce Supplement and divert the funding back into care; end certification requirements it says are an unnecessary burden; maintain a daily cap on the maximum co-contribution for residential aged care; and allow consumers to choose how they pay for their accommodation, including the use of retentions.

For more on LASA’s election manifesto and top four issues for government to address after the 7 September election, see its age services manifesto.

 

 

Tags: age-services-manifesto, election-2013, lasa, patrick-reid,

1 thought on “Post-election action plan for aged care

  1. In regard to scrapping the means testing, a person with modest means (home worth $500k) and a lump sum Bond of $350k, will be better off next year by about $6 per day.
    Under the current income tested system, pensioner would lose about $0.80 per day, plus $0.70 income tested fee, but also have $11 per day deducted from the Bond – total $12.50.
    Under the means tested arrangements, the daily fee would be approximately $6.40 per day, and no retention.

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