Government error sees aged care residents overcharged thousands on RAC cap: The Guardian

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An unknown number of residents were wrongly charged for the means-tested care fee after the Department of Human Services automated fee calculation system failed to recognise they had reached their annual and lifetime caps.

In one case, a 94-year-old woman was told she owed $33,000 after being charged for ten months after she had reached the cap.

The means-tested care fee, which is calculated on a person’s income and asset, is supposed to be capped at $63,759 for life and $26,566 a year.

It is up to the Government to recognise when a resident has reached the maximum amount and alert their provider to stop charging the fee.

A department spokesperson told The Guardian the error occurred only in a “small number of cases” which had all been “rectified” and the money refunded.

Let’s hope so – the sector does not need a “robo-debt” scandal.

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