Opting in to the new fees

Hi there,
Due to our nursing home closing down, I have to relocate my grandmother to a new home. But because she entered into the system before July 1st 2014, she has the option to ‘opt-in’ to the new fees or to stay on the same fee structure she already has. As she is high-care she didnt have to pay a bond. My question is, is she better off opting into the new fee system or keeping her current status? And if she keeps her current fee structure, does that mean that her potential new nursing home can charge whatever they like for bond etc with no capping?Or is this question maybe too broad to answer?

Hi Katiepn,Affinity Financial Aged Care Services have responded to your query as follows:In this scenario, we are unable to provide a definitive answer as to the best option for your grandmother.We would need to take into account your grandmothers current personal situation to make an accurate assessment. However, I have provided below a summary of each of the systems to highlight the differences.Under the old system, your grandmother was not liable to pay an accommodation bond due to her level of care.If a new facility accepts your Grandmother under her current fee structure, they are not allowed to charge her an accommodation bond. She would however be liable to pay the following fees:Basic Daily Care Fee payable by all residents and is currently $49.07 per day.Income Tested Fee- calculated by Department of Human Services (DHS) and based on your grandmothers assessable income.This fee is capped at $77.94 per day.Any Extra services fees.It is also worth noting that a facilcept your grandmother under her current fee structure and can ask you to Opt-In to the new system.Under the new rules (post 1 July 2014), the level of care does not determine your liability to pay for accommodation. This is determined by DHS and takes into account a persons assessable assets and income.Depending on your grandmothers assets and income, DHS may determine she is liable to pay the advertised rate for the room- called a Refundable Accommodation Deposit.Alternatively, if her assets and income are low, she may be eligible to receive government assistance in paying her accommodation.Apart from the accommodation payments, your Grandmother may be asked to pay the following feesBasic Daily Care Fee payable by all residents and is currently $49.07 per day.Means Tested Care Fee- calculated by DHS and based on your grandmothers assessable assets and income.This fee is capped daily at $244.97 per day, annually at $26,380.51*per annum and lifetime $63, are indexed.Any Additional/ Extra services feesAs this situation is personal in nature, we would recommend speaking to specialist aged care financial adviser who will be able to assist you understand the benefits and disadvantages of each system.I hope this helpsRegardsJill

Hi katiepn,A bit of a tricky question. I have passed your query onto our advisers at Affinity Financial Aged Care services and will forward their response when available.RegardsJill