When a loved one needs aged care, understanding the costs and how funding works can feel complex. The Australian National Aged Care Classification (AN-ACC) funding model changed how residential aged care is funded in Australia. This guide focuses on AN-ACC for families, providing clear information about what you need to know about aged care costs and funding transparency.
Key Takeaways
- AN-ACC is Australia's current aged care funding model, replacing ACFI.
- It assesses a resident's care needs to determine the funding provided to facilities.
- Your personal aged care costs depend on your income and assets.
- Government subsidies help cover some care costs, but you may need to contribute.
- Seek financial advice to plan for aged care expenses effectively.
What is AN-ACC?
AN-ACC stands for the Australian National Aged Care Classification. It is the funding model used by the Australian Government to determine how much money aged care homes receive to provide care for residents. This system began on October 1, 2022, replacing the previous Aged Care Funding Instrument (ACFI).
The main idea behind AN-ACC is to make sure funding matches the actual care needs of each resident. When someone enters residential aged care, an independent assessor evaluates their care needs. This assessment places the resident into one of 13 AN-ACC classes. Each class has a different funding level, designed to cover the specific care required.
How AN-ACC Changes Aged Care Funding
For families, understanding how AN-ACC impacts funding is important because it affects the overall system that supports your loved one's care. Under AN-ACC, the funding allocated to an aged care facility for your family member's care is based on their individual needs, rather than a broad assessment of the facility's services.
Here is how AN-ACC works:
- Independent Assessments: A trained AN-ACC assessor visits the resident to determine their care needs. This is done using a standardized assessment tool.
- Classification into Groups: Based on the assessment, the resident is placed into one of 13 AN-ACC care classes. These classes reflect different levels of care needs, from lower to higher dependency.
- Funding for Facilities: The aged care facility receives a specific amount of government funding for each resident, according to their AN-ACC class. This funding helps the facility provide the necessary care, such as nursing, personal care, and therapy.
This system aims to provide more fair and transparent funding, ensuring that facilities are funded according to the actual care needs of their residents.
Understanding Your Aged Care Costs
While AN-ACC determines the government funding for the facility, your family's personal contribution to aged care costs is a separate calculation. When considering residential aged care, you will typically encounter three types of costs:
- Daily Care Fee: This covers daily living expenses like meals, cleaning, and laundry. Everyone pays this fee.
- Accommodation Payment: This is for the room itself. It can be paid as a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a combination of both.
- Means-Tested Care Fee: This is an extra contribution towards the cost of your personal and nursing care. It is determined by an assessment of your income and assets.
It is important for families to get a clear picture of these potential aged care costs early on.
What the Means-Tested Care Fee Covers
The means-tested care fee is your contribution to the cost of your care. The government pays the rest through subsidies to the aged care home. This fee is capped annually and over a lifetime. This means there is a limit to how much you will pay in means-tested care fees.
Government Subsidies and Your Contribution
The Australian Government provides significant subsidies to aged care providers to help cover the cost of care for residents. However, most people will be asked to contribute to their aged care costs, based on their ability to pay.
Here is how your contribution is determined:
- Income and Assets Assessment: To figure out your means-tested care fee and accommodation costs, you will need to complete an income and assets assessment. This is done by Services Australia or the Department of Veterans' Affairs.
- Financial Hardship Assistance: If you face financial hardship, you can apply for assistance from the government. This can help reduce your aged care fees.
Understanding funding transparency in this area means knowing that your personal financial situation directly influences your contribution, while the government covers the remaining portion through AN-ACC funding to the provider.
Financial Advice and Planning for Aged Care
Planning for aged care costs can be a significant undertaking for families. Seeking professional financial advice can help you understand your options and make informed decisions. A financial advisor specializing in aged care can help you:
- Understand Your Assets: They can help you understand how your income and assets might affect your aged care fees.
- Plan for Accommodation: Advisors can explain the different ways to pay for accommodation, such as RADs and DAPs, and help you choose the best option for your situation.
- Maximize Government Support: They can guide you through the process of applying for government subsidies and understanding any available financial hardship assistance.
- Long-Term Planning: A good plan considers your long-term financial health and how aged care costs fit into your overall financial picture.
Governa AI provides tools and resources to help families manage complex financial information, making it easier to prepare for aged care.
Key Differences from the Previous ACFI System
The move from ACFI to AN-ACC represents a significant shift in how aged care is funded. For a family guide AN-ACC comparison, here are the main differences:
- Assessment Process:
- ACFI: Assessments were often done by the aged care facility staff.
- AN-ACC: Assessments are done by independent, external assessors. This aims for more objective and fair classifications.
- Focus of Assessment:
- ACFI: Focused more on the types of care interventions provided.
- AN-ACC: Focuses on the resident's individual care needs and their overall functional ability.
- Funding Structure:
- ACFI: Had a more complex structure with different care domains.
- AN-ACC: Uses 13 distinct classes, each with a clear funding level.
- Transparency: AN-ACC aims for greater funding transparency by separating the assessment from the care provider.
This new system is designed to be more fair and consistent across all aged care providers in Australia.
Frequently Asked Questions
What happens after an AN-ACC assessment?
After an AN-ACC assessment, your loved one will be assigned an AN-ACC class. This class determines the government funding the aged care facility receives for their care. The facility will then work with you to discuss the care plan and any personal contributions required.
Does AN-ACC change my aged care fees?
AN-ACC directly affects the amount of government funding an aged care facility receives for your loved one's care. Your personal aged care costs, such as the means-tested care fee and accommodation payment, are still determined by your income and assets assessment, not directly by the AN-ACC class. However, the overall funding system aims to provide more fair support for care.
Where can I get help understanding my aged care costs?
You can get help from several sources:
- Services Australia: They can help with income and assets assessments and provide information on government subsidies.
- Department of Veterans' Affairs: If your loved one is a veteran, they can provide specific assistance.
- Financial Advisors: Specialists in aged care can offer tailored advice on managing costs and planning.
- Aged Care Providers: They can explain the fees specific to their facility.
How often is an AN-ACC assessment done?
An initial AN-ACC assessment is done when your loved one enters residential aged care. Further assessments may be done if there is a significant change in their care needs, or as part of a review process. This ensures that the funding continues to match their current needs.
