No doubt you’ve heard a lot about the issue of aged care funding in recent years.
Last year’s budget saw many changes for aged care funding, and as this year’s Federal Budget approaches, there’s been a while lot of talk about how to fund aged care into the future.
The government has commissioned a number of reports, including the Alternative Aged Care Assessment, Classification System and Funding Models report, as it looks to work out how it can continue to fund Australia’s growing aged care needs.
At the moment, the government spends about $17.5 billion each year on aged care – and that’s expected to rise to as much as $21 billion by 2019-2020.
Minister for Aged Care Ken Wyatt said it was important to review the way aged care was funded to create an “affordable, sustainable and flexible” aged care system.
“In 2015-16, more than 1.3 million older people received some form of aged care and with more Australians living longer and healthier lives, those numbers will increase,” he said.
“To meet the level of demand for aged care services now and into the future the Australian Government needs to make sure its funding gives the best possible value for money.”
The Alternative Aged Care Assessment report evaluates the current aged care funding, and offers the government a few options on how it can fund aged care into the future.
It’s one of a number of reviews currently being undertaken ahead of the budget.
Mr Wyatt said working with the aged care sector was the key to reforming the aged care sector, and there would be more consultation with the sector before any decisions about funding were made.
Among those taking part in the discussions with the industry is Aged and Community Services Australia, who have argued that the sector needs stability and sustainability.
CEO Pat Sparrow said ACSA looked forward to engaging in further consultation with the government.
“Aged care providers want to deliver quality care that meets the needs of their residents. Even more important given the move to the market based, consumer driven system envisioned by the Aged Care Sector Committee’s Aged Care Roadmap for Reform.” she said.
“The report released (last week) focuses on the current funding envelope for residential aged care. However, it is critical that development of the new model includes a consideration and understanding of what the Government actually subsidises for an individual.
“When it is clear what the government pays for there can be a more sensible discussion on user pays issues and options, including equity release. This is important as the population ages and demand for services increases.”