Unfortunately, there are Old-School Approved Providers of Government Funded Home Care Packages who charge really high Exit Fees if you dare to exercise your right to choice and move your Government Subsidised Home Care Package away from them to a New-Breed of Approved Provider like Daughterly Care Community Services.
The highest Home Care Package Exit Fee on the Government’s website is a whopping $4,153 charged by a not-for-profit, the Royal Free Masons Home Care in Victoria.
In this valuable blog, I will arm you with information and knowledge so you don’t get ripped off by High Exit Fees. This blog explains:
1. what is a Home Care Package Exit Fee?
2. how Exit Fees cost you from day one of your Home Care Package, not just when you exit;
3. where Exit Fees came from – the more disturbing story and how they distort customer service;
4. most importantly, I’ll teach you the two ways to make sure that you never pay an Exit Fee ever; and
5. you’ll learn about the secret 10% pa to 15% pa fee costing you far more than a once off Exit Fee.
I have audited hundreds – and I mean hundreds of Home Care Package Monthly Statements for elderly people from all around Australia.
Two years ago, I got out my calculator, pulled up my sleeves and dove deep into auditing the Monthly Statements of Elderly people receiving a Government Subsided Home Care Package provided by Approved Providers.
I still audit Home Care Package monthly statements for my existing and new clients to help them make a fully informed decision on whether to move their Government Subsidised Home Care Package to Daughterly Care or not.
Whilst I have helped many people by auditing their monthly statements free of charge in the past, the truth is I did it for purely selfish reasons. I wanted to know what was happening in the ‘real world of Government Subsidised Home Care Packages’ so that I could best help my clients.
What I found shocked me.
Not for one minute did I expect Old-School Approved Providers to charge Elderly people the way they do.
Not all – just many.
What I found was disturbing and at times made me feel physically sick because I would often find that an Elderly person had a large sum of unspent Government funding being “held back” in their Home Care Package by their Approved Provider, despite repeated requests for more care.
1) What is the Home Care Package Exit Fee for?
In theory, Exit Fees are charged to cover the costs of exiting or discharging a client from their Government Subsidised Home Care Package. It is to cover the cost of:
1. working out how much the client paid in advance for care as that needs to be refunded to the client or their estate;
2. calculating how much of the Government Funding remains unspent and needs to be transferred to the clients’ new Approved Provider or returned to the Government;
3. to cover the cost of cancelling services; and
4. to assist a client to move into a residential nursing home because they can’t afford or don’t want around the clock in home care required in the final months / years of their life.
Each month, you have to report to the client what their unspent Home Care Package funds is. It beggars belief that some Old-School Approved Providers believe it costs them $4,153 or even $750 to bring last month’s balance up-to-date and to make a few phone calls to cancel booked services.
2) How Exit Fees cost you from day one of your Home Care Package, not just when you exit.