We are a business and we charge fees, but our fees are lower than traditional providers. Our monthly statements show our fees. Generally our fees are paid out of the government funding as they are charged to your client account.
Our fees are designed to be fair and to motivate us to help you spend the government funding on your care.
- We charge a 15% Administration Fee.
We charge a 10% Claim Fee of each reimbursement we pay.
This does not mean our fees will be 25%, they will be significantly less than that. We will happily explain this in detail if you phone.
- No Exit Fee.
- No Case Management Fee.
- No Basic Daily Fee.
- No Income Tested Care Fee.
- We do not keep unspent funds.
We charge an Administration Fee. This contributes to the overheads of running our organisation.
Our Administration Fee is 15% of your potential package funding.
Our Administration Fee is charged to your client account each month.
When we reimburse you for aged care costs, or pay a third party for aged care provided to you, we charge a Claim Fee of 10% of the payment. Our Claim Fee is charged to your client account.
Fees for Home Care Services
Since we specialise in self managed care whereby clients source care themselves, we generally do not charge for services like cleaning, meal preparation, transport, social support, etc.
We help our clients recruit care workers, purchase aids and source other aged care services on the open market. This generally means the cost is less than as charged by traditional aged care providers. Our clients can negotiate prices with individual privately hired care workers. Current rates vary from $25 to $50 per hour for care workers providing typical home care, actual rates depend on what you agree with the worker. Health care professionals including nurses, occupational therapists and similar will charge more.
However, in special cases we may directly provide home care services. If we do we would discuss costs with you. We do not charge a Claim Fee on any service we provide ourselves.
Fee Free Services
Some aged care providers charge separate fees for tasks which we consider should be included in a Home Care Package. We will not charge you:
- To create, review, update or change your Care Plan or Care Budget.
- To talk to you on the phone, email you, write you a letter, or for postage.
- To explain to you how the aged care system works or how we work with you.
We will not charge you a Client Contribution.
We will not charge you a Basic Daily Care Fee.
We will not charge you a Income Tested Care Fee.
Even though we do not collect the Client Contribution it is still relevant to your Care Budget for two reasons.
- We calculate our 15% Administration Fee on the theoretical potential Home Care Package funds which is the sum of the government subsidy, any supplements and the Client Contribution.
- The Department of Health will calculate your Client Contribution and possibly reduce your government subsidy based upon their means test.
The Australian federal government helps older people live in their home by subsidising aged care delivered via home care packages. Home care packages are conceived as subsidised care rather than free care. As a subsidised service it is expected that care recipients contribute to the cost of their care. The extent of the Client Contribution is means tested. As a client is assessed to have the means to contribute more to the cost of their care, they are expected to do so by paying more, and the government subsidy is so reduced. The Client Contribution includes a Basic Daily Care Fee plus an Income Tested Care Fee.
Legislation defines maximum rates for the Basic Daily Care Fee and the Income Tested Care Fee, which becomes the rate most traditional aged care providers charge. The legislation also allows us to not charge these fees.
Currently, and for some years past, the Basic Daily Care Fee is set at 17.5% of the single age pension. This means the regulated Basic Daily Care Fee changes as the age pension is indexed. As of July 2019 the Basic Daily Care Fee is also varied based upon which Home Care Package level you have been assigned.
The Income Tested Care Fee is means tested. The means test is similar to that for the age pension.
If your means test results in your Income Tested Care Fee being zero, your home care package subsidy will be the full amount for its level. If your Income Tested Care Fee is calculated as more than zero, your subsidy will be reduced on the expectation that your potential funding and your Care Budget will still be the same amount for the package level because your Client Contribution can be higher.
The Client Contribution for a full pensioner typically calculates to approximately $300 per month, which is the Basic Daily Care Fee only, as the Income Tested Care Fee for a full pensioner (and many part pensioners) is zero.
At Empowered Ageing, with our reimbursement model of self managed home care, we are reluctant to collect money from you just to pay it back to you.