How the government changes to home care will affect you
Peter Scutt is the CEO and Founder of Better Caring, an online platform where people with a disability, or those who are ageing, can find and hire local care and support workers. Here, he answers key questions ahead of the government changes to aged care on February 27.
What is Consumer Directed Care?
Essentially, Consumer Directed Care is about providing greater choice and control for older Australians when it comes to accessing support they need to live independently. For the first time, it’s putting consumers at the centre of decisions about their life and support – and it reflects changes we’ve recently seen take place in the disability sector with the rollout of the NDIS.
Initially launched in 2015, it provided Australians receiving Home Care Packages with an annual budget of individualised funding and greater choice over how they can spend it. Despite this, 75 per cent of people we speak to have little or no understanding of CDC and what it means for them. This is set to change from 27 February this year, when the second phase of CDC is introduced.
What was the system prior to Consumer Directed Care?
Historically, people receiving financial assistance in the form of a home care package will receive their government funds through a traditional aged care provider. The provider would normally hold the funds, charge an administration and case management fee, (in some cases up to 50 per cent of an individual’s package) and will then supply care services – often at a cost of $40-50 an hour.
From February 27, those receiving home care packages will have their funds ‘attached’ to them, not a provider. Put simply, this means that they have the freedom to shop around for the best deal when it comes to finding a home care provider.
What are the key differences in the way a home care package might look under the old system versus Consumer Directed Care?
Importantly, the conversation around Home Care Packages is changing. Previously, someone entitled to a Level 4 Home Care package (a high-level need) would need to find a provider who would normally advise them that the package entitled them to 10 to 12 hours of care a week. Now, a recipient of a package will be told, “You have a Level 4 home care package – this entitles you to over $48 000 a year in government funding. How do you want to spend that money to get the best outcomes for you and your life?”
Some clients, by selecting a provider with low admin fees, and finding and hiring their own workers on the Better Caring platform at an average rate of $35 an hour, are doubling the amount of care they can access with their package. For clients with a high level of need, this has a direct impact on their quality of life.
Are there large amounts of administration involved for elderly or their loved ones?
As these changes are yet to take place, what they will mean administratively for consumers is still relatively unknown. What we do know is that someone with a Home Care Package will still need to have those funds held by an approved provider – but the difference is, they get to choose that provider.
In the face of this increased competition, providers are offering a more flexible, ‘tiered’ model of service delivery. For clients who would prefer to access the full-service model, it is likely to be business as usual. However, for consumers and their families with the desire and ability to self-direct their funding, in the future, their provider may simply act as a ‘funds holder’, tasked with administering their package and charging a relatively small fee to do so. Ideally, the provider administering their funds will no longer be the same agency providing the services – so any advice or case management they provide is completely independent.
This will allow the consumer to spend the remainder of their money on platforms like Better Caring, where they can directly hire their own care workers, avoiding high overheads of the bigger players, and ultimately accessing more hours of care and support. The big winners in this system will be people who are informed and active about the choices they’re making about their life and their care.
Where can consumers go for more information?
We encourage consumers visit us at Better Caring to find out about how we work. The government is set to launch a new portal on 27 February, but in the meantime, consumers can also find some information on the My Aged Care website.
Related links:
Signs your ageing loved one needs assistance
Helpful advice for caring for someone with dementia
Attitudes towards caring for ageing parents revealed