Labor will cap Home Care admin and management fees

Labor Party

An Albanese Labor Government will stop the rorting of Home Care fees, by placing a cap on how much users can be charged in administration and management fees, and will require monthly reporting directly to users on where their money is going.

This will mean home care users can be confident their money is going directly to care – not not management bonuses, new office fit outs or glossy marketing schemes.

This is another part of Labor’s plan to improve aged care and boost transparency and accountability in the sector. It follows Labor’s announcement of a crackdown on dodgy residential aged care providers, implementing tough penalties for systematic abuse and neglect.

Labor knows Home Care is an important part of the aged care ecosystem. It is also not without its problems.

According to the Grattan Institute, about 25 per cent of home care fees are taken up by administration and management costs. In evidence to the Aged Care Royal Commission, this has been reported as being as high as 50 per cent.

Too many Australians are not getting value for money in their home care fees. Their money should be going to care – pure and simple.

These unacceptably high fees lead to older Australians missing out on the care they need to help them stay living at home.

Labor will restore confidence in the system by requiring monthly reporting by providers directly to users and their families, showing a breakdown of where their fees are going. It’s time to put the power back in the hands of the users of the home care system, who currently do not have enough information about where their money is going.

We will work with older Australians, families, providers and experts to set caps that protect the quality of residents and the quality of care.

There are many good quality operators doing the right thing. This will protect the reputation of the sector.

Quotes attributable to Anthony Albanese, Leader of the Australian Labor Party:

“Labor will restore integrity and transparency to our aged care system. Whether you are in residential care or home care, Australians should have confidence the money they are paying is going where it should – towards their care.

“Labor is calling time on aged care providers who rip off vulnerable Australians. We know home care is a vital part of the aged care system – that’s why we want to make sure it is operating as it should, in the best interests of Australians.”

Quotes attributable to Clare O’Neil, Shadow Minister for Senior Australians and Aged Care Services:

“It’s time users of home care packages got better value for money. Fees should be paying for high quality care – not office work. Labor will ensure the whole aged care system – residential and home care – improves on our watch.

“Better accountability, better care, greater confidence. No matter which pathway Australians choose for their care, Labor will be there for them.”

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