Understanding Nursing Home Costs
Nursing home costs are dependant on a number of factors, including them type of accommodations that are required and the level of care involved. When it comes to nursing home costs, there are for main elements that contribute to the total costs.
Daily fees and costs
Residents of aged care facilities usually pay a daily fee towards the cost of their living expenses which might include meals, cleaning, laundry, utilities, personal care, daily living assistance and medicine or medical services. The cost of this daily fee is limited by the Australian Government and review two times a year. The maximum amount for nursing home costs and daily fees is a figure that is based on the Age Pension and is limited to 85 percent of the Age Pension amount. Right now, the age pension is set at $860.60 a fortnight so the maximum daily fee right now is $52.25 a day.
Nursing home costs and accommodation payments are dependant on assets and income. If you have under $50,500 in assets or income then no accommodation payments will be required. If you receive more than that then you may be asked to pay for accommodation. These costs will be different from home to home and will be based on the features of the accommodation and the type of accommodation. The way that you pay accommodation fees and nursing home costs will be decided prior to when you move into the facility, however you’ll get up to 28 days to change your mind. You may pay for accommodation fees in a single payment, most of the balance of this payment is refundable when you leave the facility. It’s also possible to make a non-refundable rental style payment every month or your can make small rental style payment and a larger once off payment in combination.
Means tested fees
Nursing home costs are often means tested which means that your income and financial assets are taken into consideration when determining aged care costs. Care fees are limited at $28,087.41 currently regardless of income and assets.
Extra service fees
Extra service fees are variable nursing home costs that are usually there for people who have the income to pay for a more luxurious lifestyle. Extra service fess may involve larger and more luxurious rooms and accommodations, features such as bedside phones, internet access, speciality therapies and beverages like wine, beer and spirits.
If you are unable to afford the cost of care due to financial issues then it’s possible to apply for financial hardship assistance which can lower the costs of your accommodation.
If you reach an agreement with your accommodation provider about nursing home costs then those amounts will remain fixed unless you decide to change your room or facility. The cots mentioned up above are relevant for people that have been entering care facilities’ since the 1 July 2014. People who have entered before will have different payment arrangements in place.
Those who are only spending time in an aged care facility for a small amount of time on a temporary basis will pay for their care like they are at a hotel. The fees will be the same as the other daily fees that the residents who live there permanently pay.
The cost of your care in aged care facilities will depend on the facility you choose and your own personal circumstances. The fees associated with aged care can change each year so it’s best to get advice and a comprehensive understanding of the costs involved in living at different facilities’.