Independent Federal MP Rebekha Sharkie has introduced a bill that will cap the amount of money home care providers can charge for “administration”.
Dubbed the Aged Care Amendment (Making Aged Care Fees Fairer) Bill 2021, the bill would – in line with Ms Sharkie’s previous advocacy – ban providers from charging more than 25% in administration for Level 1 and 2 Home Care Packages, and 20% for Level 3 and 4 Packages.
According to Ms Sharkie (pictured), the current system is “not working” to provide older Australians the care they need to stay at home, and the Government needs to “stop the rorting” with caps.
“Existing legislation just says aged care providers have to keep their management fees and administration costs to a ‘reasonable’ amount but there are absolutely no guidelines about what ‘reasonable’ looks like.
“So-called competition is not keeping prices down, and some older Australians are paying more than 30% and even up to half their packages in administration fees, or the costs are hidden in inflated hourly rates,” she said.
In a survey of 15,000 residents aged 75 and up in her home seat of Mayo, Ms Sharkie found 94% of the 1,200 respondents said they were unable to afford daily care.
“Many of those surveyed reported paying administration and management fees of up to 48 or 50%, including on Packages that are very minimal.
“Some of these people were only able to afford one hour of cleaning or gardening a fortnight, and their care plans have hardly changed from one year to another, but they were still being charged up to 50% in administration fees,” she said.
The bill also bans exit fees for customers changing home care providers, and will require providers to provide a comparative fee schedule for at least five approved providers in the area, or all approved providers if there are fewer than five.
