While we may not want to think about it, nursing home costs are something that need to be looked at some point in everyone’s life. It gets to a point where some people simply can’t live at their home anymore due to them requiring additional services to help them survive. There is nothing to be ashamed of regarding these facilities as they have grown to such a point where you would hardly even realise that you’re not at your own house.
The amount you end up paying for aged care is dependent upon a number of things. There are even several different levels of care, facilities and even methods in which you pay. To break down the entire process we have developed a short guide to help you understand everything you need to know about nursing home costs.
All individuals who live in an aged care facility are required to pay a basic daily fee. The fee essentially is designed to pay for the daily living expenses of the individual. Below are the following factors that are generally covered.
- 3 meals a day
- Cleaning of the facility and your room
- The cleaning, drying and folding of your washing and it being delivered back to your room
- Cooling and heating facilities
- Personal care services
- Daily living assistance (for those that require it)
- Some pharmaceutical and medical care services
The Australian government sets the maximum daily fee that can be charged and renews this figure twice every year. As of the 20th of September 2018, the max daily fee that someone can be charged is $50.66. This figure is estimated to be reviewed once again on March 20th of this year.
How much you pay for your accommodation depends upon your income and assets that you have. If the combined amount is equal to or less than $48,500 you won’t have to pay anything. If however you have over that amount you will then be required to pay a fee from the a few options. While the price varies from each facility, it ultimately depends upon what services and facilities you require. You can change what method of payment you would like to go with however after the first 28 days you will be locked into that particular method.
Refundable accommodation payment
The first method is via a RAD. This nursing home cost is a single payment that is similar to a loan that is interest free. You will get most of this deposit back once you leave the facility. It can either be refunded to your estate or to yourself if you either pass away during your time there or decide to move out. The services and facilities that you used during your stay at the facility will be deducted from this amount.
DAP is another nursing home cost method in which you pay for each day that you stay at the facility. This amount is calculated on a daily rate that is normally charged each month. These payments are non-refundable even when you decide to leave the facility.
A combination of the two methods above
You can also decide to pay your nursing home costs via a combination of the above methods. People generally go with this method when their personal circumstances call for it. You can even start off with this method and see how you can during the initial month. You just have to remember that if you wish to change your mind with the method in which you pay your nursing home costs, you have to do it within the first 28 days.