10 Things you need to know about Aged Care – Part 2
Part 2 of ‘10 things you need to know about Aged Care’ addresses 5 more of the many common questions you may have about Aged Care. If you missed part 1 of this article you can find it here for points 1 to 5 already mentioned.
6. How the RAD is assessed by the Department of Human Services (DHS).
There are two ways a RAD is assessed by DHS. For the purposes of the aged care assessment, the RAD is still seen as an asset and will count towards the means tested fee calculation. However, when determining your Centrelink Age Pension assessment, any RAD paid is an exempt asset and will not be counted towards your assessable assets.
7. How is the former home is assessed by the Department of Human Services (DHS)?
If the former home is not exempt from the DHS assessment (no spouse or protected person residing in the home) then there are two ways this will be assessed;
When determining means tested fee calculations the home will be assessed up to the capped value of $171,535.20 (increasing with CPI) ongoing while the home is not sold and the resident remains in care.
For Centrelink Aged Pension purposes, the former home will remain exempt for the first 2 years. Upon the 2 year anniversary of the resident being in care, the former home will then be assessed at market value and be counted as an investment property (if a resident was in care prior to 1 January 2016, different rules may apply).
8. Searching for a facility
If you’re unsure of what facilities are available in a specific area, you can find each provider online by visiting www.myagedcare.gov.au. Click the tab ‘find a provider’ then ‘search for a provider’. Here, you can search by suburb / postcode and see what facilities are available. You can also create a shortlist in order to compare each provider on various different aspects.
This may assist you with shortlisting providers as well as a range of room prices that may be charged for the Refundable Accommodation Deposits (RAD).
9. ‘Should I only consider looking into aged care if I think I need immediate care?’.
The simple answer is no, in a lot of cases when someone is looking at care and has to move in, it can be a time sensitive situation (due to a sudden decline in health or injury). This may mean that the person moving in, doesn’t necessarily have the opportunity to consider their options. This may also mean that family members helping out need to make this decision on someone else’s behalf, which can be stressful.
What can help with the process is being proactive. If you are considering that sometime down the track you may need an aged care facility, we encourage you to consider your options early. It may also be beneficial to try respite at a shortlisted facility to determine how you may like it permanently. Of course, this does not mean you are required to make any decision at the time, but at least you may be able to write down a few options you like. This is especially important for family to consider if you are no longer able to assist with the decision at the time.
10. Don’t get yourself stressed over the situation.
When someone you know is considering the move into aged care, it can be a stressful time for everyone involved. When appropriate, seeking professional help from a qualified adviser cannot only relieve some of your stress, but provide you with assistance in completing necessary paperwork and providing you with financial strategies to consider to cover the costs of care. For more information, we encourage you to review our website for further aged care articles or contact one of our Accredited Aged Care Professionals™ Kate Officer or Zac Dodds to discuss further.