Assessed to only pay RAC or DAC instead of full RAD/DAP - Public vs private homes

We have had our assessment and my mother is in the middle tier. Standard daily Fee, No Care Fee and a DAC of @$32 p/d or RAC of @$220,000.

My question is this; If we look at public nursing homes, apparently the most we pay for the RAC/DAC is above. If we look at private nursing homes, how does it work if the RAD/DAP prices shown are extremely high. I cant understand how the system works if we only pay a maximum of $32 per day.
I love some of the private, higher quality homes, but cant figure out if we will be expected to pay a huge amount. One that comes to mind has a RAD of $390,000 or DAP of $53 p/d… What does it mean when the literature says the GOvt will pay the difference? Does this mean she can live in a flash place and the govt foots the bill for the extra… I hardly think that would be the case!
I have an apt to see a private financial specialist in two weeks, however I am losing sleep and wondering if I am wasting my time looking at more expensive private homes.

My Mother has been paying RAC of $58.19 per day but now her property has been sold & she can now pay the full room price as per the facilities advertised price of $350,000 but the facility are saying she has to pay $356364.93 for her room. Is this correct? Why should she pay more than what the room is valued?

Hi littleod. My understanding is that your mum is assessed as a low means contributing resident. Her contribution is the RAC of $32/pd, with the Government topping up her contribution to the maximum accommodation supplement that the care home is eligible for on a day.This means that the RADs/DAPs advertised don’t apply to her.The Government asks providers to keep a number of beds available in their services for low means customers. There can sometimes be challenges around sourcing these beds if the provider is strictly keeping to their required ratio.However, my belief in this climate is that there are plenty of vacancies around, and any care home would be happy for your mum to apply, regardless of her abi

Hi littleod,
The majority of aged care homes are government subsidised. There are very few totally private homes in Australia. This means that the government pays subsidies to the operator of the home so that they can provide the services required by each resident. How much you pay for a room in an aged care home depends on the provider you choose, your financial position (as assessed by Department Human Services) and the services you receive. You are expected to contribute to the cost of your care if you can afford to do so and how much you pay can vary from home to home and room to room in the same home ie a smaller room with a share bathroom as opposed to a large room with own bathroom, a garden view etc. The accommodation fee is set by individual aged care homes and all homes must clearly advertise this price on their website. The accommodation fee will vary according to factors such as local property prices, the age of the home, the type and size of the room and amenities provided. If an operator wants to charge more than $550,000 for the RAD (or accommodation equivalent) they need approval by the Aged Care Pricing Commissioner. Your mother has been assessed for a RAC of $220,000 as a partially supported resident by the government. If she would prefer a more expensive home then my understanding is that she will be expected to pay the difference in cost herself (or loan from a family member etc if appropriate).However you should always try to negotiate a room price with the home. I would make a short list of homes that appeal and then call them to see what is the best room rate available. I think you are very wise to speak with a specialist aged care financial adviser about this. We always recommend that people do so as it can potentially save money and protects your mother’s finances going forward. Kind regards.