What Is the Cost of Home Care Packages?

Elderly individuals who need help with daily tasks have the option to apply for a Home Care Package so they can remain living comfortably at home. These aged care programs include a variety of support services, not only medical, but personal, emotional, and social support as well.

The cost of Home Care Packages can be divided into two categories: government contribution and personal contribution. 

Personal contribution depends on several factors, including the Home Care Package level you're assigned to, the type and amount of care you require, and your chosen home care provider.

In this article, we'll talk about how much you can expect to pay for a Home Care Package, what the associated fees include, and how this government subsidy even works.

How Do Home Care Package Funds Work?

If you want to receive care services through a Home Care Package, you won't have to pay for those services from your own pocket. Instead, those eligible for Home Care Packages can apply for government funding, after which they will receive their home care budget.

Once approved, the government subsidy you're eligible for will be allocated to your chosen home care provider, who will divide those funds based on your full-time needs. 

Home Care Package funds are paid in the form of yearly subsidies. Your provider will divide the total amount into monthly payments to deliver the care services you need.

The government contribution that will be allocated to you depends on your Home Care Package level. These are the yearly subsidies for all four package levels:

1. Level 1 - $10,271.1
2. Level 2 - $18,063.85
3. Level 3 - $39,310.5
4. Level 4 - $59,593.55

Any unspent funds from a Home Care Package remain with the home care provider and are meant to be used for the recipient's care needs and services. All the details of monthly transactions, including unspent funds, should be listed in your monthly statement.

These funds can be used for a variety of tailored care services, including:

• Personal care
• Clinical care
• Therapy services
• Help with household tasks and everyday activities
• Home modifications and light housekeeping
• Social activities
• Occupational therapy
• Medication management
• Respite care
• 24-hour care

Home Care Package Costs and Fees

Even though Home Care Packages are funded through government support, as a care recipient, you're still required to cover some of the costs.

To be more precise, the amount that the recipient is expected to contribute is based on:

• Their financial situation
• The Home Care Package level
• The type and amount of care required

The individual's financial situation is assessed through an income and assets test, and the government subsidises the remaining amount. This means that individuals with higher incomes and more significant assets may have to contribute more to the cost of their Home Care Package.

However, the higher level you're assigned to, the more funds you will receive from the government.

Levels 3 and 4 are for those who require intermediate care and complex care services, so they naturally cost more. Whereas levels 1 and 2 are for those with basic and low-level care needs, so they require less money.

What Fees Are You Required to Pay?

The amount you will have to pay is called a personal contribution, and it depends on your current financial situation and other personal circumstances.

Care recipients usually have to pay the following Home Care Package fees:

1. The basic daily fee
2. The income-tested fee
3. Fees for additional services

The basic daily fee is a fixed fee determined by the Australian government, and it's the same for everyone, regardless of their financial situation.

The income-tested fee (otherwise called the income-tested care fee) is means-tested and depends on the recipient's income and assets. If your income is above a certain income threshold, you may need to pay an additional fee on top of the basic daily fee.

Note that you might not have to pay the income-tested care fee if you're on a full pension.

Other fees include care management fees, which are costs associated with the coordination and management of the care recipient's Home Care Package, and package management fees, which cover the costs of managing the government-funded Home Care Package on behalf of the care recipient.

This fee includes tasks such as financial administration, reporting to the government, and ensuring compliance with relevant regulations and guidelines related to Home Care Packages.

If you want to change your home care provider, you will also have to pay an exit fee. Although, some providers, like Haisey Home Care, don't charge exit fees should you choose to end your contract. Aside from not having to pay an exit fee, Haisey Home Care also doesn't charge a basic daily fee.

What Haisey Home Care Offers

Compared to other providers, Haisey Home Care offers transparent costs and a low flat rate of 27%. In addition, our care management fees and package management fees are lower than what other service providers charge.

Take a look at our home care services price list:

• Level 1 - Care management fee - $1,746.09 per year
                    Package management fee - $1,027.11 per year
• Level 2 - Care management fee - $3,070.85 per year
                  Package management fee - $1,806.39 per year
• Level 3 - Care management fee -$6,682.79 per year
                  Package management fee - $3,931.05 per year
• Level 4 - Care management fee -$10,130.9 per year
                  Package management fee - $5,959.36 per year

Not only does Haisey Home Care offer lower costs and fees compared to other home care providers, but we also offer more hours of care per year. So, not only do our clients have to pay less for our support services, but they will also receive more hours of high-quality, personalised care.

Stay Informed About Home Care Package Costs

When you enter aged care, you'll have to pay certain costs and fees when you start receiving care services, which are covered by the Australian Government.

If you'd like to know more about the cost of Home Care Packages, you can contact My Aged Care or reach out to Haisey Home Care. One of our care managers would be happy to explain the costs associated with receiving Home Care Packages.