Planning To Move Into A Residential Care Facility? Know The Costs

There comes a time in life when the body ages and it can no longer function as it once did. Major parts of the body such as the back start to ache and you discover that you can no longer do your daily house chores.  When it comes to such a point, don't gamble with your life. Move into a residential care, relax, and let other people take care of your needs. However, residential care services come at a cost and it is better if you knew them before you make a move.

What Are The Fees That One Is Required To Pay At A Residential Care Facility?

There are three main fees you are required to pay when you are moving into a residential care. These are the basic fee, accommodation fee, and a means-tested care fee. Basic fee and accommodation fees are a must. These fees take care of food, drinks, bed, laundry, cleaning, and other basic needs.

A means-tested care fee is an additional fee rather than a must-pay-fee. The Department of Human Services works out if you are required to pay the fee; they basically look at your regular income and capital. Regular income includes earnings, benefits and pensions. Capital includes land and property, business assets, investment and cash savings. If your capital and savings are found to be above a certain limit, you may be required to pay the means-tested care fee. You cannot, however, continue to pay the fee when your total costs for the means-tested care fee reaches the $60,000 limit. There is also a yearly cap of $25,000.

How Does The Government Chip In To Help With The Costs?

You have probably heard that the government helps with home care costs. It is true, but the government doesn't help all people. You can only receive the government's assistance --partially or fully --if you are moving into a government regulated facility and if you are deemed as a low means resident by the Department of Human Services after a study on your income and assets (the means test). Your means tested amount should fall below the maximum accommodation supplement on the date that you are moving in to the aged care facility. The maximum accommodation supplement stands at $53.84 per day meaning your means tested amount should fall below this value. The limit can change, though, from time to time.

What Modes Of Payment Are Acceptable at A Residential Aged Care Facility?

There are three ways you can pay for accommodation at a residential care facility. One is through a refundable accommodation deposit (RAD) method. The other is through a daily accommodation payment (DAP), and the last one is through a combination of the two methods. With RAD, you pay a lump sum amount as a deposit for your accommodation but the money is completely refundable. With DAP method, you don't have to pay a single payment at once. Your costs accrue daily and you can pay after an agreed period of time, say monthly.