Reduced AN-ACC funding for the highest-care-needs aged care residents attracted repeated questioning at the Residential Aged Care Funding Reform Update webinar on Wednesday, reflecting deep concern among providers.
AN-ACC funding for the following classes will be cut from 1 October 2024:
- Class 1 (palliative care) by $10,880.65 annualised for the year from 1 October 2024
- Class 10 (not mobile, higher function, with compounding factors) by $9,055.65
- Class 11 (not mobile, lower function, lower pressure sore risk) by $9,438.90
- Class 12 (not mobile, lower function, higher pressure sore risk, without compounding factors) by $7,584.70
- Class 13 (not mobile, lower function, higher pressure sore risk, with compounding factors) by $10,880.65
Funding for residents with lower care needs will increase.
"Hospitals are overflowing with high care residents, emergency departments are jammed, ambulances are ramped up... yet the Government has further undervalued the care needs of high care residents," Anton Hutchinson, whose family has managed Canberra Aged Care for 30 years, said.
"The flow on effect to the community is catastrophic. The strain this will put on the hospital system will be catastrophic."
In response to questioning at the webinar, Rachel Hauenschild, Director of Aged Care Pricing with the Independent Health and Aged Care Pricing Authority (IHACPA) said, "Those price weights for the classifications was based on the cost of care collected during our 2023 residential aged care costing study.
Director of Aged Care Pricing
IHACPA
"IHACPA's costing study for RACs (residential aged care) showed higher costs for some AN-ACC classes and lower costs for others and this movement reflects changes in the cost of care in residential aged care over the five years between 2018 and 2023."
Rachel said the decline in respite care funding was influenced by the small sample size.
The webinar also fielded questions about the latest AN-ACC update being delivered two weeks late and only two weeks before the funding comes into effect.
Mark Richardson, Assistant Secretary, Residential Care Funding Reform Branch with the Department of Health and Aged Care, acknowledged the delay may impact aged care providers' preparations.
"We will look at our processes and see if we can make improvements for next year."