Reducing administrative and management costs for aged care at home

Australians will no longer be subjected to excessive administrative and managerial charges as part of their Home Care Packages, thanks to significant measures made by the Australian Labor Government.

The Albanese Labor Government has taken significant steps to ensure Australians will no longer be charged excessive administrative and management costs as part of their Home Care Packages.

From 1 January 2023, care management and package management charges will be capped at 20 per cent and 15 per cent of the respective package levels.

This means more package funds will be available to meet the aged care needs of older Australians.

The Albanese Government is also banning exit fees, improving provider choice for care recipients, while stopping providers from charging separate brokerage and subcontracting fees in the program.

More than 37,000 older Australians will no longer be charged for changing service providers or exiting the program.

These changes will make pricing clearer and easier to compare for Home Care Package recipients.

Home Care Package providers will need to review their current charges and discuss and agree on any pricing changes with their care recipients by 1 January 2023, ensuring they obtain informed consent for any changes.

Reduction in admin and management costs means more money for other support

Minister for Aged Care, Anika Wells said that they are acting quickly on removing the most excessive charges and putting downward pressure on prices. She encourages all providers to start planning and informing the care recipient about the changes.

“We will support providers to adjust their pricing and set reasonable and competitive charges. We are committed to giving care recipients better value for money and the choice and control to shop around.”

“A reduction in administration and management charges means more money in your package to pay for help around the house, personal and clinical care, assistive equipment, and other supports to stay safe and independent at home,” Wells said.

Ritchelle Drilon

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Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.

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