By
Haisey Home Care
July 18, 2024
•
x min read
Home Care Packages are government-funded aged care services. They provide ongoing support to older Australians so they can remain living comfortably at home.
When you sign up for a Home Care Package, you apply for government funding. Once deemed eligible, these funds will be directly allocated to your provider.
But what can Home Care Package funds be used for?
"Can I buy a fridge with my Home Care Package?"
"Can a Home Care Package pay for medication?"
"Can I buy a TV with my Home Care Package?"
If you've been asking yourself what a Home Care Package can and can't be used for, this article is for you.
We'll also talk about the process of applying for a Home Care Package, including the associated costs and eligibility.
How Does Home Care Package Funding Work?
The Australian Government funds Home Care Packages.
First, you must receive confirmation that you're eligible for a Home Care Package. After that, you'll be assigned to a Home Care Package level.
There are four Home Care Package levels:
- Level 1 (basic care needs)
- Level 2 (low care needs)
- Level 3 (intermediate care needs)
- Level 4 (high care needs)
The first two levels are for older Australians who need help with daily activities. This can include:
- Meal preparation
- Personal laundry services
- Medication management
- Home maintenance
- Personal hygiene
- Similar types of personal care
The third level is for those with more demanding care needs. For example, help with getting dressed and going to the bathroom.
The fourth and final level is for care recipients who have complex care needs. They need therapy services, speech therapy, respite care, and other clinical services.
Level 4 can also include 24-hour care services.
The funding you'll receive will mostly depend on your HCP level. It should reflect the level of care you need on a daily basis.
How Much Funding Will You Receive for Your Home Care Package?
Your HCP funding is allocated based on your assessed care needs and the approved care plan.
The funding is divided into different categories. This includes personal care, nursing care, domestic help, therapy services, and more.
Package funding is flexible. It lets you choose specific services and providers that best meet your needs within the allocated budget.
The funding you will receive from the government depends on your HCP level.
The higher the level of care you need, the more funding you will receive to cover the costs of those care services.
Here's how much funding you can receive per year based on your Home Care Package level:
- Level 1 - $10,588.65 a year
- Level 2 - $18,622.3 a year
- Level 3 - $40,529.6 a year
- Level 4 - $61,440.45 a year
As an HCP recipient, you will receive the funds in the form of monthly payments, not a lump sum payment.
The funding will be directly allocated to your chosen service provider. They will then divide the monthly payment into separate funds.
You will be able to use these funds for different care services.
Keep in mind that the funding will be predetermined.
Depending on your income, you may be asked to contribute to the cost of your Home Care Package yourself. For more information about HCP funding, contact My Aged Care.
What Is Included in Home Care Package Funding?
Home Care Package services are for those who need help with everyday tasks. So, they can include different types of support services.
Care services covered by HCP funds usually include the following:
- Personal care
- Light housekeeping and home modifications
- Specialised nursing services
- Meal preparation
- Physiotherapy services
- Respite care
- Recovery care and wound management
- Medication management
- Help with transportation and mobility
- Companionship care
- Social outings and support
- 24-hour care
- Allied Health Services
The good news is that these support services are flexible. You can adjust your plan based on what you need the most.
Not all services you need may be listed.
But you and your chosen provider will create a personalised care plan. Your plan should meet all your recurring needs.
You can also use your HCP funds to pay for mobility aids. This includes shower chairs, wheelchairs, walking frames, bed rails, and crutches.
This list can also include aid batteries and pressure-relieving mattresses. Some seniors might also need aids for using eating utensils.
Your Home Care Package doesn't replace any other existing health programs. This also applies to the Medicare Benefits Schedule.
You should continue using these through your care workers and hospitals when needed.
What Isn't Included in Home Care Package Funding?
There are many different types of services that HCP funding can cover. But certain expenses don't make the list.
All the expenses you would normally pay for with your income are not covered.
This can include:
- Groceries and food
- Rent
- Mortgage payments
- Utilities or bills
- Medication and medical care expenses
- Club memberships
- Entertainment activities
- Holidays cost
So, if you were hoping to buy a fridge or a TV with your HCP funding, this, unfortunately, won't be possible.
The cost of prescription medications is not covered by HCP funding. This also applies to medical appointments and other medical expenses.
These expenses are managed through the Medicare system or private health insurance.
Most of these expenses come with an exception.
You can't use your HCP funds for entertainment activities and club memberships.
But they may also cover social and community activities. This applies to activities that can help you stay connected to your community.
You can't use them for rent and mortgage payments. But you can use them for necessary home modifications.
Specific inclusions and exclusions can vary based on your care needs and HCP level.
When you receive your HCP, discuss this with your provider. You should also talk about any other costs or contributions you may need to make.
Costs Associated with Receiving Home Care Package Funds
When you apply for an HCP, you're technically applying for funding for care services. The funding comes from the government.
But that doesn't mean that the application process won't cost you anything.
If you apply for Home Care Package services, there are some fees you'll have to pay, including:
- A basic daily fee
- An income-tested care fee
- Other fees
The Australian Government sets the basic daily fee. It applies to all Home Care Package recipients.
Depending on your Home Care Package level, this fee can vary from 15.68% to 17.50%.
You may have to pay another fee known as the income-tested care fee. This depends on your income.
This fee is determined by the Department of Human Services. It's based on an assessment of your income and financial assets.
You might need to access other services not covered by your Home Care Package. In this case, you may need to pay for them separately.
Home Care Packages must remain accessible to individuals with different financial circumstances. That's why certain provisions have been put into place.
The Australian Government subsidises a significant part of the cost. Income-tested fee caps and exemptions are available for those who need financial aid.
Applying for Home Care Package Funds
If you want to apply for a Home Care Package, this is what you have to do:
- Contact My Aged Care.
- Set up a formal income assessment.
- Get assessed by an Aged Care Assessment Team (ACAT).
- Wait for someone to contact you after you've been placed on a waiting list.
- Browse Home Care Package providers to find one that meets all your needs.
- Create a care plan with your chosen provider.
The application process may seem daunting, but it will pay off once you receive the necessary care.
If My Aged Care decides you are eligible for HCP funding, you will receive a confirmation letter.
This letter determines what Home Care Package level you've been assigned to.
Your level of urgency will also be determined. This outlines how long you'll have to wait before you start receiving the funding.
During this time, you are free to find aged care services that can provide you with the care you need.
Are You Eligible for Home Care Package Funding?
To receive funding, you must be eligible. You are likely to be eligible if you are:
- An older Australian over the age of 65 (50 for Aboriginal or Torres Strait Islander people)
- A younger person over the age of 16 with diagnosed health conditions that prevent you from completing everyday activities
- An individual with reduced mobility
- An elderly person who has recently experienced a change in family care arrangements
- A patient who has experienced a recent fall or has been admitted to a hospital
As you can see, Home Care Packages aren't just for elderly individuals. They're also for younger people with disabilities and special needs.
If you aren't eligible for a Home Care Package, you can apply for the CHSP. Non-government-funded care programs are also available.
Before you apply for a Home Care Package, you can use the eligibility checker on the My Aged Care website.
Understanding HCP Funding
Home Care Packages are care services for elderly Australians. They aim to make their life at home easier.
The funding for these services can cover medical, therapy, and occupational services.
Haisey Home Care is a dedicated care partner that offers services for all four HCP levels. We don't have a basic daily charge or an exit fee for our services.
We also offer more hours of care per year compared to other providers. Our goal is to make sure our patients receive the care they need.
With our help, they can continue to live independently and comfortably at home.
If you would like to know more about our care services, feel free to reach out to us. You can also book a free in-home consultation if you want to talk about your specific needs.
