If your Government Funded Home Care Package Approved Provider advised you that they are doubling their aged care administration fees…what would you do?
Recently, an Approved Provider wrote to our client to advise they were doubling their administration fees.
This particular Approved Provider had NOT been able to provide any monthly statements to clients since Consumer Directed Care started on 1 July 2015 and they are NOT the only Approved Provider who had not provided monthly statements.
Accountant and CEO of Daughterly Care, Kate Lambert says “the monthly statements are required to be sent to Consumers and this is absolutely critical as they are the cornerstone of Consumer Directed Care because they enable the Consumer to see how their Co-Contributions and the Government Funding is being spent by the Approved Provider“.
Ms Lambert added “without the monthly statement there is no transparency on costs and Consumers cannot see what fees they are being charged by the Approved Provider.”
Ms Lambert said, “as this particular Government Funded Approved Provider has still not been able to meet their administration requirement of sending monthly statements since 1 July 2015, when Consumer Directed Care started. I advised our client to refuse to pay any increase and to ask how they could justify doubling their administration fee, when they were not providing monthly statements and meeting the Consumer Directed Care requirements.
Rightly so, the Approved Provider decided not to double or even increase our client’s administration fee.”
Ms Lambert continued, “our client is an informed Consumer and therefore able to speak up against the fee being doubled but I wonder what happened to all the other less-informed Elders?”.
Ms Lambert stated, “I just don’t understand why the Approved Provider thought that was an ethical decision to double their administration fee when they were not even meeting the basic cornerstone of Consumer Directed Care by supplying consumers with monthly statements”.
Kylie Lambert, B.Ec F.Fin
Daughterly Care CEO & Co-Founder
Ms Lambert has also warned clients to check their monthly statements thoroughly to ensure that GST is not being deducted from their home care services.
Daughterly Care had identified a number of Approved Providers who have deducted 10% GST from clients’ Home Care Package which is against published Government Guidelines. This is because Government Funded in Home Care is GST-free and the Provider claims back the GST from the Tax Office each month. That’s why they don’t need to deduct it from the client’s package.
Ms Lambert refers to the deduction of 10% GST from clients’ Home Care Packages as the “secret 10% fee” because the fact is, the Approved Provider claims the 10% GST back from the Australian Tax Office and keeps it for themselves.
Ms Lambert says, “Finally, Consumers should check their latest monthly statement and make sure their Contingency Fee retained by their Approved Provider is zero because this money is kept by the Approved Provider if the Elder dies or is placed into a Nursing Home”.
Prior to 27 February 2017, most Elders need more care than they receive and should spend any unspent money on respite or additional hours of care so that it is not lost.
The great benefit of Consumer Directed Care for Elders is that their monthly statement shines the light on how the Government and their own money is spent.
So for the first time, they have the information and therefore the power to check they are receiving good value – that’s why the Government introduced compulsory monthly statements from 1 July 2015. Private care providers like Daughterly Care have been transparent with our clients providing fortnightly invoices for the last 21 years.”
“Daughterly Care has produced a series of short videos that teach Consumers how to read their Consumer Directed Care statement because even Chartered Accountants had complained that their statements were too difficult to understand. Numerous intelligent business people with extensive accounting and finance experience have told me, ‘I don’t think any Elder can understand these statements‘.
So I have made a series of short videos that explain six different Approved Provider statements. Education is the key to being an informed Consumer and informed Consumers always get better value and service.”
Existing clients of Daughterly Care are invited to email me a copy of all their monthly statements for me to audit so you can make an informed decision on your best way forward.
If you would like to discuss any part of your Approved Provider’s administration fee or services, please ring us today on (02) 9970 7333.
Daughterly Care CEO & Co-founder