Home care providers say they have been blindsided by a letter to consumers from Minister for Aged Care Anika Wells explaining that the funding for their Home Care Package (HCP) will increase by 11.9% from 1 July 2023 to cover the cost of the Fair Work Commission’s 15% wage rise – 3.1% less than the increase.
You can read the letter here.
“Everyone’s HCPs will increase by 11.9% to cover the cost of the wages increases for aged care workers as well as other increases in prices,” it states.
The letter also details the new subsidies (pictured above) – but there is no mention of the 5.7% indexation increase promised in the Federal Budget.
If you combine both figures, it amounts to an 8.8% reduction in funding for home care providers.
Yet the letter also tells recipients: “You should continue to receive the same services and hours of services that you need.”
“It’s a kick in the teeth,” said Yvonne Timson (pictured), the CEO of WA home care and disability support provider Community Vision Australia (CVA).
“If you reduce funding, how can we provide the same level of service? As providers, we need to understand if they are expecting us to find an additional 3.1% out of our own funding. They are not communicating with us.”
However, the CEO’s main concern is the confusion created for home care recipients – who need to approve any price increases.
“Everyone is telling them that in Government speak, we are funding providers, and you shouldn’t lose any services, but that is not right,” she said.
“They will think, ‘why should I lose any of my services and why should I approve your fee increase?’ But if they don’t, we can’t deliver the service.”
Yvonne also challenges the Department of Health and Aged Care’s statement that on costs will be paid from 1 July 2023, saying that the grant application process means that it will likely take months for providers to be reimbursed.
“If we go on past history, they still haven’t paid some of the COVID grants to some organisations,” she noted.
We have requested clarification on the figures in the letter from the Minister’s office – watch this space.
