If a resident has paid a RAD and is now being moved to another room (within the same home) with a lower RAD price. Does the service provider refund the difference with the interest or refund just the difference?
Thanks for your help
Thanks for your response. However, i am asking from the Service provider’s point of view.Example- A resident Mr A. paid a $500,000 to move to a room Z. In six months time, the same resident Mr A moves to room Y. Room Y’s advertised rate is $400,000. Since Mr A is now moving to the lower rate room on January 01 2018, will the service provider now refund only the difference which is $100,000 or will the refund be $100,000 plus the interest from 01 January 2018 up until when the money is fully refunded (Let’s say the refund was processed on the 7th day of Mr A moving to Room Y)- Refund amount $100,000 plus interest of 7 days…I hope this makes sence??R
Thank you for your question. The RAD is refunded to you, but you don’t receive the interested. The interest that is made over time is the payment that the aged care facility receives. To better understand it, when someone decides to pay "daily accommodation payment "on a RAD of $500,000 what they are actually paying is the interest the aged care facility would have made, had a RAD been paid. So in summary, you do receive your RAD back but you do not receive the interest that was earnt on your RAD.
We hope that helps,
the agedcare101 team