This insurance company believes pensioners should pay more
Bupa believes pensioners should pay more for nursing home services, and if the government takes heed it could lead to a nasty shock in this year’s budget.
In its 2018-2019 Pre-Budget Submission, Bupa recommends the capped value of people’s home should be increased from $162,087.20, which would theoretically lead to those with valuable homes being asked to pay more for care.
The Government covers 70 per cent of aged care costs on balance with seniors picking up the remainder, and the capped value is part of an asset tests that determines how much senior pay for aged care if they don’t sell their home.
Bupa contends this is the best way, “to increase consumer contributions to aged care from those who can afford it, while providing a safety net for those who cannot”.
“Sustainable funding arrangements are needed to enable the delivery of quality care for residents that is centred on their needs, supporting their independence and allowing them to live their final years in comfort and with dignity and respect,” Bupa states.
“It is also required to encourage long term investment in the sector, so that the projected growth in demand for aged care beds and workers can be met. Sustainable funding will help the sector attract, upskill and retain a high quality aged care workforce – from geriatricians, to specialised GPs, nurses, care workers and other support staff.”
Figures from the Australian Bureau of Statistics suggest the number of Australians aged 85 and over will balloon to 1.8 million by 2050, and Bupa contends this will stretch demand and the amount of spending on nursing care for seniors.
But some people are sceptical about the insurance company’s suggestion.
Jillian Slade of Oasis Aged Care Solutions, told YourLifeChoices that it’s important to remember that the assets means tests is complicated, and everyone’s case is different.
“There is no formula, no one rule. Every case is different and it is very difficult for people to understand how much it will cost them to move into aged care when they need to,” Ms Slade said.
“Often, when I meet a client I begin to find out that what they thought would be a clear cut case is not. All sorts of issues complicate their circumstances, such as whether they hold their property under a tenants in common agreement or if there is a surviving partner who continues to live in the family home, and so on.”
What are your thoughts? Do you agree with Bupa’s suggestion? Or are there other factors that should be considered? Let us know in the comments section below.