How Much Should You Expect Home Care Costs to Rise in 2023?
As of 1st January 2023, your Home Care fees might be changing.
The Australian Government has made some significant pricing updates to Home Care Packages. These updates change how Home Care providers can charge and structure their recipients’ fees.
While it’s common for Home Care fees to increase every year, along with pension rates, the fee adjustments this year are notable. As such, recipients may see some of their Home Care fees being capped or eliminated.
So will you be paying more or less for Home Care in 2023? Let’s take a closer look.
Home Care Package programs often have hidden or complicated costs, excessive administration and care fees, and surcharges. These extra costs can change the actual prices of Home Care without transparency, making it difficult for recipients to understand the value that’s being provided.
So in 2023, we’ll see fee changes that attempt to reduce high administration costs and improve your ability to compare provider prices.
Furthermore, the amounts of the Home Care Package will be increased by 11. 9% from 1 July 2023. Read this article to learn more.
As of 1st January 2023, the notable changes for Home Care Package fees are:
This means Care Management and Package Management prices set by providers must be capped at 20% and 15% of the package level, respectively. Depending on your care level, the figure below shows the maximum amount you can be charged a fortnight.
Additionally, Home Care providers cannot charge their customers the following fees.
Providers cannot charge an exit fee if you decide to terminate their care, even if you have agreed to this fee previously.
Separate fees for third-party services
Providers cannot charge extra fees for third-party goods or services you received through your Home Care Package. These additional costs, such as mobility aids, must be added to the service price and agreed upon by you.
Package Management fees in a month where no services except Care Management are delivered
If you decide to pause your services for a month for any reason, your Home Care provider cannot charge a Package Management fee, unless it’s your first month of care with them.
So what does this mean for you? If you have a Home Care Package, you can expect to see a standardised pricing practice for ongoing from all providers, making it easier for you to focus on the services and supports that you need.
Some providers may adjust their pricing model based on these new fee changes. So you might see an increase to your Package Management and Care Management fee if you’re paying less than the cap. You could also expect an increase in hourly costs, but your provider will have to notify you of any changes and discuss the impact (if any) to your budget.
Additionally, there will be a standard increase on your basic daily fee (if you’re paying one) and income-tested fees (depending on your financial situation), which usually rise along with pension rates. However, not all providers charge the Basic Daily fee, and you will not be asked to pay this fee if you are with a CareAbout provider.
Your Home Care fees in 2023 could depend on how much you currently pay. If you are paying more than 20% for care management and 15% for package management, your provider will need to decrease their fees. It means you’ll pay less for the management and scheduling of services out of your Home Care Package.
Additionally, if you are using services that are brokered or that come from a third party, you will not be charged for these services. However, providers can transfer these fees to other costs, especially for customers currently paying less than the 20% and 15% limits.
Your provider is legally obligated to inform you of any price changes, and they should ensure that you understand your Home Care Package fees clearly. If you’d like more clarity on your current Home Care Package and compare provider prices and value, CareAbout is here to help.
For experienced advice in understanding Home Care, contact our team for a personalised discussion.