In what appears to be another concession to its reform agenda, the Federal Government has revealed overnight that it will stage the introduction of price caps on services in the new Support at Home program over a 12-month period.
New capped pricing for home care services had been set to start under the new program from 1 July 2025.
Now providers will be able to continue to set their own prices for services from this date, with the Government’s set price caps delayed until 1 July 2026 – 18 months’ away.
The 10% cap on care management and ability for operators to pool care management for their customers will still begin from 1 July next year.
The Government has also pledged additional consumer protections to monitor prices and “ensure pricing is fair” during the 12-month transition period.
What is the new timeline then?
In a statement issued by the Department of Health and Aged Care late on Thursday afternoon (12 December 2024), the Government has promised to consult with older people, consumer advocates and the sector on the development of these measures from January 2025.
“We will also begin a survey of prospective provider prices,” it read.
March 2025 will see “further information on pricing” shared with older people, families, carers and the sector.
Despite the 12-month delay to pricing caps, the Government says it expects that providers will begin discussions with home care recipients around service agreements for Support at Home, including pricing, from April next year.
“Recipients will need to agree to any pricing changes before the new program starts from 1 July 2025,” the statement added.
Providers charging “inappropriate” prices to be contacted
A more detailed information sheet for providers also reveals that operators will need to start sharing their Support at Home pricing information with the Department from 1 July 2025. This will be published on the My Aged Care website’s Find a Provider tool.
Providers will also be required to publish their full schedule of prices published on their website – both moves clearly aimed at providing greater visibility of what operators are charging their customers.
The advice also suggests that providers will be contacted if their prices appear too high.
“Program assurance activities will include engagement with providers who charge prices that appear inappropriate to seek to understand the reasons why,” states the advice.
More “flexibility” welcomed
The change in Government policy has been welcomed by the aged care peak bodies.
Ageing Australia CEO Tom Symondson told The Weekly SOURCE:
“This welcome announcement is a result of our advocacy and work with the Government and Department of Health and Aged Care to address critical concerns in home and community services like funding, transition and implementation of programs.
“The initial flexibility allows providers to establish realistic prices that account for overheads, administrative costs, and quality care management. It also takes away two of the major transition concerns our members have been raising, that prices may be announced so late as to be impossible to implement, and that they may be unrealistic, causing providers to fall over when older people need them most.
“We remain committed to working closely with all stakeholders to ensure a smooth transition and drive the best outcomes for providers and most importantly older Australians.”
Catholic Health Australia (CHA) has also applauded the changes.
“This flexible approach will be more effective than the originally intended price caps in meeting the ambitious goals of the Aged Care Act to dramatically increase access to high-quality, in-home aged care services in the coming years,” said Alex Lynch, CHA’s Director of In-Home Support.
“It is important the transition to the new program is handled smoothly, otherwise there is a risk of disruption to patient care and gaps in service delivery. We must ensure we get this historic reform right.”
A number of large home care providers including Bolton Clarke and Australian Unity had called for pricing changes to be delayed, warning of a serious immediate impact on the financial sustainability of the sector and the need for further consultation on pricing.
“Price caps will be staged to provide the Independent Health and Aged Care Pricing Authority with more time to undertake further consultation and provide expert advice to inform these pricing arrangements,” said the advice.
With this announcement, it seems that the sector will have the opportunity to have their say – and advocate for change.
