Aged care guide: How to choose the best home

From cost to what to look for, aged care insiders have revealed how to navigate the system and find the best home.

Aged care insiders have revealed what Australians should look for in a home, and how to navigate the process of finding one.

Rosemary Seam has lived in residential aged care in regional NSW for five years.

The 85-year-old said she entered the facility after she was unable to access a home care package she was approved for quickly enough due to the waitlist.

“My health needs became urgent,” she said.

“I was in and out of hospital.

“I came to this decision myself, that I just can’t live like this.”

Her health has since improved, and she said while she “didn’t really have a choice at the time”, entering residential aged care had been the right decision.

Mrs Seam said she had previously become acquainted with the facilities in the area through visiting friends.

Aged care resident Rosemary Seam. Picture: Matt Jorgensen

Older Persons Advocacy Network (OPAN) senior policy officer Anne Muldowney urged people to plan ahead.

“People often make plans around their finances and their non-work activities in their retirement planning, but we’d recommend that they also think about their future health and care needs as well,” she said.

“Most people express a strong desire to stay living at home as they age, but it’s important to also factor in what your preferences and choices would be if that becomes no longer possible.”

Ms Muldowney said one in three people entered residential aged care from hospital.

“Until that point, most of them have been living independently or with support at home,” she said.

“For people not to feel pressured to prematurely go into residential aged care if they don’t feel ready, they need to make sure they’re informed about their rights and what other options might be available.”

She said if people found themselves in this situation they could ask about access to the transition care program, which could provide support either at home or in an aged care facility, and people could see what level of recovery they made and potentially get a higher level of assistance while still living at home.

“There’s a range of things that you can you can explore before you make the decision to enter residential aged care,” she said.

She said people who thought aged care was in their near-term future should register with My Aged Care, as there could be waiting times for assessments and support.

Ms Muldowney said people could plan respite care stays in residential aged care to get a feel for a place, use the fee estimator on the My Aged Care website, and connect with an aged care specialist officer through Services Australia if they had issues navigating online.

People could also contact OPAN and look at its self-advocacy toolkit.

Factors to consider when choosing a home

Mrs Seam said people should consider the surroundings and layout of aged care homes.

She said proximity to family and friends was also important, and encouraged people to consider available medical services and access to health professionals and the size of bedrooms as well as amenities like airconditioning.

“Cost is a consideration too,” she said.

“We hear all this about how complicated the financial aspect can be.

“I found, in my case, it was all pretty straightforward.”

How much does aged care cost, and how is it subsidised?

The Department of Health and Aged Care says to ensure the sustainability of the system participants, who can, will contribute to the cost of their care and accommodation.

“The means assessment determines if an aged care resident is eligible for government assistance with their accommodation costs,” a spokesman said.

“This also determines the means tested care fees payable.”

The department said the combination of fees a participant can be asked to pay included:

Basic daily fee

All residents pay this fee to help cover the costs of daily living expenses including meals, cleaning, laundry, heating and cooling.

The maximum fee is set at 85 per cent of the single basic age pension (currently $63.57 per day).

Fully supported residents only pay the basic daily fee.

Means tested care fee

Depending on an assessment, a provider may ask a resident to pay a means tested care fee.

The amount paid depends on income, assets and the cost of care.

An annual cap of $34,174.16 and lifetime cap of $82,018.15 apply.

But there will be changes to arrangements from July — the fee will be replaced by a means-tested contribution towards non-clinical care.

The federal government will fully fund clinical care costs in residential aged care, the department said.

Residents with sufficient means will contribute 7.8 per cent of their assets over $502,981 or 50 per cent of their income over $131,279 (or a combination of both) up to a daily limit of $101.16.

The daily cap will be indexed twice a year.

A lifetime cap of $130,000 on the non-clinical care contributions will be introduced, and residents will stop paying the non-clinical care contribution after four years or $130,000 — whichever they reach first.

People can seek aged care information from My Aged Care resources. Picture: Istock.

The Hotelling Supplement — an extra contribution that helps approved providers of residential aged care services meet hotelling costs, such as catering, cleaning and gardening — will be means tested from July.

Residents with high enough assets or income will make a contribution to some or all of the supplement.

The contribution will be calculated as 7.8 per cent of assets over $238,000, or 50 per cent of income over $95,400 (or a combination of both) up to $12.55 per day, as of September 2024, and will be indexed twice annually.

Accommodation costs

Aged care homes must publish their maximum room prices, and residents can negotiate.

Residents must agree on a room price before moving into a home, but how much is paid will depend on the means assessment.

If an individual is eligible for assistance, the government will pay some or all of the accommodation costs.

People can choose to pay accommodation costs as a lump sum amount that is refunded when leaving care, minus any fees that are agreed to be drawn down from it, or a daily payment that is not refunded when leaving care, or a combination of these.

Additional service fees

This covers the cost of any additional services agreed between resident and provider.

Extra service fee

This fee is only payable where the resident occupies an “extra service” place.

Extra services are hotel-type, and can include better accommodation and services.

Where to find information

A department spokesman said My Aged Care was the entry point to access government-funded aged care services.

“It includes a phone line, face-to-face and online options,” he said.

He said the website included a section on what to consider when making your decision, including finding providers that met the required care needs and determining payment requirements.

“The My Aged Care website includes tools to help older people understand the process to access aged care, apply for an assessment and find a provider that meet their needs,” the spokesman said.

“The Find a Provider tool enables searching for and comparing aged care providers in a preferred location.

“It includes a range of filters to help undertake a targeted search … users will be able to see the home’s star ratings.”

Residential aged care homes receive an overall star rating, and scores across four key areas — residents’ experience; compliance; staffing; and quality measures.

Prospective residents are encouraged to seek independent financial advice to determine the best way to pay for their care.

Services Australia offers a free service that can be accessed by calling on 132 300 and say “Financial Information Service” when prompted.

For more information about star ratings, including frequently asked questions and factsheets, people can visit the federal health department’s website or call My Aged Care on 1800 200 422

If people have issues or concerns with their aged care, they can call OPAN’s aged care advocacy line on 1800 700 600.

Originally published as Aged care guide: How to choose the best home