Older people are being reminded of the government’s Financial Hardship Assistance program, amid reports of aged care contribution payments increasing since the New Aged Care Act was introduced on 1 November.
While the new Act has benefits including an important Statement of Rights to strengthen protections for older people – implementing this in everyday practice will take time.
OPAN member advocates are hearing that many older people are making the decision to cancel or reduce the support they have been assessed as needing, particularly for Support at Home, due to cost.
There are also concerns around reduced purchasing power due to pricing changes, shifts in assessment processes, and uncertainty around the Support at Home letters and interim package releases.
OPAN CEO Craig Gear is reminding older people that support is available to those finding the changes difficult to navigate and manage.
‘No older person should be worse off under the changes and more must be done to raise awareness of the new Act and assistance available.
‘Any service agreement must be fair, equitable, transparent and easy to understand. Older people have the right to negotiate the terms and service plan with their aged care provider and seek guidance from an independent advocate.
‘The right to apply to have your contributions reduced or waived through the government’s financial hardship program exists so you aren’t left without essential care simply because fees have become unaffordable – and you have every right to ask for help early,’ Mr Gear said.
The financial hardship assistance program, which can be applied for through Services Australia, can assist with Support at Home fees or Residential Aged Care fees. It is not a loan and older people do not have to repay it.
The government has simplified the program application process to align with the implementation of the new Act. The form still requires the applicant to fill out all essential expenditure amounts but has been updated to remove some of the evidence requirements.
While bank statements may be needed, additional receipts are no longer required for the initial submission. Services Australia may follow up to validate any payments that are considered out of the ordinary.
Financial advocacy officers from OPAN’s national network have created 4 short videos to explain:
- who can apply financial hardship
- what happens if you are approved for financial hardship
- evidence required for a financial hardship application
- tips for older people considering submitting a financial hardship application.
Older people who are seeking or receiving government-funded aged care services can also contact the Aged Care Advocacy Line on 1800 700 600 for free, confidential and independent information and advocacy support.
An advocate or financial advocacy officer can provide practical assistance, including by going through service agreements to see if there have been unfair fee increases and by helping older people negotiate and update their care plan, so it better suits their needs.
They can also assist during the financial hardship application process by supporting older people to navigate the steps involved and understand their rights.
Other resources are available for older people who want to apply or check their eligibility for the financial hardship assistance program:
- View the OPAN contributions information sheet flyer
- Apply for financial hardship assistance at Services Australia: Steps to claim financial hardship assistance with aged care costs – Aged care calculation of your cost of care – Services Australia
