Taskforce Report - What it means for Home Care
3 minute read
Given the media coverage of the newly released Taskforce report, you'd be forgiven for thinking that residential care is all there is in the Australian aged care system. There was hardly a mention about what it means for home care. So, Paul and Roland have done the work of sifting through the report to see what it means for the sector that supports people at home.
The context for the report and the need for changes to funding are in the numbers. They have estimated there will be an extra 44,000 home care participants each year for the next 20 years. By 2042 there will be almost 2 million home care users with aged care spending rising from 1.1% of GDP in 2021-22 to 2.5% in 2062-63. That's HUGE, and an enormous business opportunity.
In the least surprising announcement of the last year, the Taskforce has not recommended a new tax to fund this increased demand in aged care. And yes, the only other way to getting extra dollars into the system - greater user contributions - is the go for both residential and home care.
The size of the potential increase in funding through user contributions is highlighted in the Taskforce call for more equity in fee setting. They note current Government funding is about 75% of the total costs of residential care while it sits at 95% of home care funding. To bring these two contributions into line (without lowering user fees in aged care, which is as unlikely as a new tax) would see a big increase in funding to the home care sector.
And who is going to pay? Older people who can afford it will pay more, with a safety net for those who cannot. Contributions would be based on Age Pension status, a system now widely used in CHSP. They propose grandparenting arrangements for the new home care fees for people currently in the system.
The co-contribution would vary depending on the type of service accessed, based on 3 service lists:
Clinical supports – government contributions would be highest and co-contributions lowest (if any) for supports essential to prevent decline in health (e.g. nursing, allied health)
Independence – a middle tier of items that may support independence and reablement (e.g. personal care, food preparation)
Everyday living – contributions would be highest for services that most people would typically pay for anyway, such as house cleaning and garden maintenance.
They have recommended clearly defined service lists with 'inclusion and exclusion principles' that detail what's in and what's out. The following table is from the report.
It appears many lessons have been learned from NDIS funding approaches. In a nod to rural and remote problems, they want to continue some block funding in thin markets and have raised concerns about the current remoteness classification system.
In a move that would see the Quality & Safety Commission with an even bigger role, they want it to promote best practice, support providers to innovate and invest in technology. You've got to wonder if this is not a bit too much to expect of an already over-worked Commission or even if they are best placed to assist. We think the funding should be made available to peak bodies and other groups to promote best practice and innovation.
Overall although the Taskforce report is not surprising it appears a well-thought-out approach that neatly fits the government's agenda. If adopted the Taskforce recommendations will mean significantly more funding for home care and a simpler system. That's got to be a good thing.
We are busy trying to build an audience for these Essential Briefings, so if you like this article it would be fabulous if you share it with other people you think might like it too.
Continue Reading
