Nursing Home Fees & Costs: What You Need To Know
Transitioning your parents into an aged care facility or nursing home can be an emotionally difficult and stressful time. Add to that, nursing home costs and other fees – and most people are left feeling very overwhelmed.
For most people, nursing home fees and charges are like a foreign world. You see a variety of prices and costs but it can be difficult to understand what you owe, where you can save and how you can work it all out without spending every last penny.
First things first, it’s important to understand that nursing home prices and other fees can vary greatly from person to person, depending on individual financial situations and other individual factors.
As such, it’s always a good idea to consult a financial adviser who specialises in providing aged care and nursing home advice to clients.
6-Step Guide to Securing Aged Care
This step-by-step guide to securing aged care will hold your hand through the entire process. From determining affordability to advice on financial planning strategies; to finding a home and making sure all the boxes are ticked for Centrelink.
Feel confident in your aged care decisions. Get your copy today.
Nursing Home Fees Explained
As you’re already aware, nursing home costs can be complicated. Here’s a an overview of the different types of nursing home payments:
- Basic daily fee: The basic daily fee is a service fee that pays for daily meals, cleaning, laundry, heating and all other day-to-day expenses. The minimum basic daily fee changes annually to match the Age Pension. The maximum fee is 85% of the person’s basic Age Pension.
- Accommodation payment: This is the fee you pay for your loved one’s accommodation in the nursing home. Sometimes the Australian Government can cover all or part of the aged care accommodation costs, saving you a huge chunk of the amount of money you spend. Make sure to consult your nursing home adviser about this and they can help you pick the most suitable option for you.
- Means-tested care fee: This fee is set by the Department of Human Services (DHS) after they assess your income and assets. It has cap, meaning you don’t have to keep paying it once you’ve reached your cap. Your financial adviser can tell you what your yearly and lifetime caps are.
These three payments will vary from person to person. Family income and pension will also affect how much of these nursing home fees and charges you will ultimately need to pay.
Nursing home costs in Australia: How to work it out
So you know how nursing home prices are set, but how do you work out exactly what you will owe?
- Estimate how much you’ll pay
Your nursing home adviser will usually begin the process by using an estimation tool to calculate your nursing home costs. This will give you an idea of how much you’re likely to spend.
- Get a financial assessment done
Next, get an expert to assess the value of your assets and income to give you an idea of whether you’ll be able to take on the financial responsibility. This assessment will also be useful in making the decision whether to sell the family home or not.
Your adviser will also help you get assistance from the Department of Human Services or the Department of Veterans’ Affairs (DVA) to see whether you qualify for any benefits or government assistance. These benefits will go a long way to lessen the financial burden for you and your family.
- Know the nursing home costs
Visit different nursing homes, assess their facilities and find out what their costs are. You can then pick one that offers the best balance between comfort and costs.
Minimise your nursing home fees and charges
At Core Value, we are a highly specialised team of financial advisers providing nursing home and aged care advice to clients across Australia.
Transitioning a loved one into a nursing home can be expensive. By assessing each client’s individual financial situation, we can help you cut down on nursing home costs and only pay what you really owe.
With proper planning and clever strategies, we can help you save $3000 – $5000, regardless of your home or net worth.
Find out how you can save on nursing home costs.
Give us a call on 1300 944 011 to schedule a consultation with an expert aged care financial adviser.
Want to Speak to a Nursing Home Financial Adviser?
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Contact us for a FREE consultation or please call 1300 944 011.