Most people don’t know that the Government is subsidising up to $$54,552.90 per annum, per person for in home Consumer Directed Care…
…But is Consumer Directed Care Working?
At this early stage, yes and no!
A Case Manager from a Home Care Package Approved Provider told me, she tells her elderly clients and their families that “Consumer Directed Care is when the Government pays for a certain amount of care and if you need more than that, you pay for it out of your own pocket”.
Ah, no! That is not Consumer Directed Care, that’s the way it has always been.
Click here for the Government’s definition of Consumer Directed Care and explanation.
The photo on the right is of Kate Lambert, our CEO (B.Ec F.FIN) and Verlie Hall, Registered Nurse / Managing Director signing a contract with a competitor. This is an example of Consumer Directed Care in action and working as intended.
Why did Daughterly Care take this step? Let me explain.
The carer / spouse was not satisfied with the quality of care provided for her husband who has dementia. The Home Care Package Provider’s staff would take him for a walk and not be able to get him home so his wife had to leave work to collect him.
Being dissatisfied, the client exercised their right to choose who was to provide the care. She chose Daughterly Care because of our specialisation in dementia care, built-up over 21 years of experience.
To their credit the Approved Provider were professional and invited Daughterly Care a signed contract to supply services.
(L – R) Kate Lambert and Verlie Hall
Daughterly Care CEO and Managing Director
Real examples of how Consumer Directed Care is NOT working:
Three of our clients have asked their Home Care Package Approved Provider to use Daughterly Care Caregivers however, they were each told that “Daughterly Care would be too expensive because you would need to pay $500 to add Daughterly Care to our list”.
This response is an artificial financial barrier to deny the client their legal right to choose the care supplier they wish to use. Consumer choice is the whole point of Consumer Directed Care.
I met with that Approved Provider and have informed them their actions are “not aligned with the market and no one else is taking this approach. In fact, Daughterly Care is on a number of Elders’ preferred list because of our dementia and Live in Care specialisations.”
I have also pointed out that they were disrespecting the client’s right to choice. Further, they only have two companies on their care supplier panel and when I asked why they still had level 3 Home Care Packages, they said they’d had problems staffing their packages. That sounded like a good reason to let Elderly clients and their families have their choice of an Approved Provider for their in-home care needs.
There are stories in the media about existing Consumers who are being charged much more for their Government Subsidised in Home Care Package, now that Consumer Directed Care begins on 1 July 2015. We had a client’s son ring and ask us, why his father is being asked to pay:
$66,000 per annum top up fee;
$10,000 Income Tested Care Fee;
$3,530.80 Basic Consumer Co-Contribution Fee.
$79,530.80 per annum = C
G. = Those fees are ON TOP of the Government paying $37,567 for his level 4 in Home Care Package (the actual package is $47,567 however, because the Consumer is paying the maximum $10,000 Income Tested Care Fee – the Government pays $10,000 less).
So the Consumer fees of C plus Government income of G adds up to = $117,097.80 pa
I met with my client and the Case Manager of the Home Care Package Approved Provider, which I pointed out 3 errors in the weekly cost quote:
1. I found an $8,000 client overcharge error;
2. I found 10% GST was being charged to my client even though the Approved Provider is a Not For Profit and claims back all GST paid each month. By charging my client 10% GST plus receiving a GST refund from the Tax Office, the Not For Profit was making an additional 10% profit!
3. I found 10% GST was also being charged on voluntary ‘top up fees’ which is actually GST exempt.
I was able to explain to our client that the Approved Provider’s new $3,530.80 pa fee is the Basic Consumer Co-contribution fee that all consumers, including full pensioners are being asked to pay toward their inhome care. (There has been a lot of media about pensioners not being able to afford this fee.)
I was also able to explain that the $10,000 pa Consumer Income Tested Fee was a new fee payable where a single Consumer earns income of $25,000 pa. There is a Safety Net so that once the Consumer has paid $60,000 (i.e. $10,000 pa for 6 years) the Consumer Income Tested Fee is no longer payable.
I calculated the fee the Approved Provider is charging and it is 15%. This is less than HALF the fee many others are charging.
All Daughterly Care clients in receipt of a Consumer Directed Care in Home Care Packages are encouraged to send a copy of their last two statements along with their new “monthly budget” or new Consumer Directed Care statement so that I can personally double check it for you.
NOTE: Daughterly Care clients will not be charged for this personal and confidential service.
If you would like to take advantage of this service, drop us a line and include a copy of your statements and new budget.
Fax: (02) 9913 2214
PO Box 670 Narrabeen NSW 2101
I am very happy to answer any questions you have on Consumer Directed Care and I am happy to help you negotiate a better outcome. Email me directly email@example.com.
More information about Consumer Directed Care
Frequently asked questions about Consumer Directed Care.