Home care service price gaps of 21 providers shows how much older Australians will pay after new aged care reforms

Older Australians wishing to stay in their own homes are facing a rude shock with some up for massive new fees for basic services from an analysis of 21 providers. SEE THE LIST

Exclusive: Older Australians receiving government help to stay in their own homes could be paying double what they need to for services like cleaning, if they don’t shop around.

From Friday providers are mandated to publish their prices on their websites, with an early look revealing that some are charging as much as $135 an hour for cleaning, a shower, or meal prep and $145 for gardening.

It comes as older people have expressed their horror at how some providers have hiked their prices since November 1, when the new aged care reforms came into force.

An analysis of 21 providers by Trilogy Care found general house cleaning varies between $66 and $135, while the cost for an hour of physiotherapy ranges from $143 to $325, a 127 per cent price difference.

SEE THE FULL LIST BELOW:

Luke Traini, CEO of Trilogy Care which offers self-managed care, said the services with the biggest increases were those from more traditional providers with a fully-managed care model, where the provider locks clients into its own service providers.

“Huge price gaps under Support at Home are emerging, as we expected,” Mr Traini said.

He said self-managed care won’t suit everyone, but with price differences between the two models now so pronounced, people are considering it.

Part of the reason for the price hikes is that prior to the new Aged Care Act which came into force last Saturday, fully managed providers were able to charge a flat fee of up to 35 per cent of someone’s funding package to cover administration costs.

Now they can only charge 10 per cent for each service.

With high wage costs and worker shortages one way to recoup the loss is by raising the cost of services.

Different services have gone up fro those needing home care. Picture: Thinkstock /Supplied

The government has said price caps won’t be introduced until at least July next year.

While clinical care is free for all, the new Support at Home program will require both pensioners and self-funded retirees to contribute to non-clinical care costs, if they joined the scheme after September 12, 2024.

For example, for that cohort, a self-funded retiree will pay a maximum of 80 per cent for cleaning. So 80 per cent of a $135 hourly cleaning fee ($108) is a lot more cash to outlay than 80 per cent of $66 ($52.80).

Elderly Aussies are spendnig thousands of dollars on services. Picture: Thinkstock

Mr Traini said over a year thousands of dollars are at stake. He said a self-funded retiree receiving home care services could expect to pay an out-of-pocket contribution of $4185 in a single month with the most expensive provider versus $2136 with the cheapest. The difference works out to be more than $24,000 a year.

“Ultimately, everyone should be looking at what their provider is charging,

considering how this impacts the number of care hours they can get each month and

potentially switching to self-managed care if it suits their circumstances,” Mr Traini said.

Stef Todorov, Aged Care and Dementia Advocate said older people and their families have expressed ongoing concern about the impact changes in pricing will have on their ability to access the support they need.

She encouraged all of those impacted to make submissions about their concerns and experiences to the upcoming inquiries.

Greens Senator Penny Allman-Payne will chair two inquiries into the new reforms.

TOP TIPS ON HOW AUSSIE SENIORS CAN SAVE ON SUPPORT:

1. Check your hourly rates with your current provider today. Paying more than $100 an hour for personal care? You’re being overcharged.

2. If your cleaner costs more than your accountant, switch. $135 an hour for housework means you can afford less cleaning time.

3. Self-manage if you can because it can cut your bill in half. You choose who you want and negotiate the hourly rate. Lower fees mean more hours of care from your funding package.

4. Don’t assume a ‘big brand’ means better value. Some of the highest mark-ups we found came from well-known legacy providers. Don’t stay loyal to a brand that’s quietly draining your budget.

Luke Traini, CEO, Trilogy Care.

Originally published as Home care service price gaps of 21 providers shows how much older Australians will pay after new aged care reforms