I am trying to help a very ill friend sort through a stressful situation with her mother.
Her mother went into aged care in Queensland in November 2014, at the time, the agreement (signed November 2014) with the Provider lists an Accommodation Contribution of $163,287.33 (an amount they suggested) of which a RAC of $20,000 was paid at the time (all the cash that could be afforded). This is the only lump sum that was paid. This agreement also lists a DAC of $27.12 and interest rate of 6.63%.
At the same time (Nov 2014), a DHS letter suggested provider could ask for daily fee of $47.15 and accommodation contribution of $30.75, also stated asset value of $110,000 and net fortnightly income of $919.71. Also says, if part payment of accommodation contribution by lump sum Provider must leave minimum assets of $45,500.
All her invoices are being paid by direct debit and list daily care fees and other costs (hairdresser etc). Suddenly an item of ?bond interest? has appeared on the invoices for about 793 days x $26.027 totalling over $20,639 and if that is all paid out, then friend?s mother won?t have much left at all to pay the daily costs.
So my questions are (sorry for so many): Can the Provider suddenly ask for ?bond interest? payments and why would they call them that? If they haven?t been deducting a DAC by their error, will it suddenly be due? If the Agreement (signed Nov 2014) has contained errors (such as calculations) will it impact on friend?s Mum?s ability to stay where she is? Finally, if the DHS said assets of $45,500 should be left, how could the Provider ask for the $163,287.33 amount? Most importantly, can they force her to leave her current accommodation because of financial reasons?
Any assistance very, very much welcomed?
Many thanks. Your responses much appreciated.
Hi Paul,Don Swanborough from Affinity Aged Care Financial Services has answered your questions below:Q: Can the Provider suddenly ask for bond interest payments and why would they call them that?If they havent been deducting a DAC by their error, will it suddenly be due? A:Sometimes providers invoices are not clear on the meaning of the payment required. It appears your friends mother was not asked to pay Residential Accommodation Deposit (RAD) so only a DAC should be charged. If it has not been collected the facility can ask for back payments. However your friend should approach about a payment plan if finances are an issue. If the Agreement (signed Nov 2014) has contained errors (such as calculations) will it impact on friends Mums ability to stay where she is? Again if there was an error on the agreement this is something your friend some discuss with the aged care facility to get a resolution. Finally, if the DHS said sk for the $163,287.33 amount? The $45,500 is the minimum amount of assets your friends mother must be left with at the time of entry. After that there is no minimum asset requirement. Q: Most importantly, can they force her to leave her current accommodation because of financial reasons? A:If she is struggling to pay her bills and has assessable assets less than $34,082.10 she could apply to Centrelink for financial hardship. If eligible this would pay for aged care accommodation costs but not including additional services such as hairdressing etc. Firstly it would be good to talk to the provider about this and then discuss it with Centrelink. It may be worthwhile getting an appointment with a Centrelink Financial Service Officer to discuss this matter or as this is a complex area of aged care so I suggest your friend seek advice from a specialist aged care provider. I hope that helps.
Hi Paul,It can be very confusing working yuor way through the financial considerations of the Aged care sector. I have forwarded your questions to our expert advisers at Affinity Aged Care and hope to have some answers for you as soon as possible.RgardsJill