I think my parent nees care, what do I do?

The Aged Care Process

Q&A Paying for Care

How much will my parent have to pay towards their care?

What is the maximum amount that my parent will have to pay for residential care?

Is hospital level care more expensive than rest home level care?

How can my parent find out about extra financial help that might be available?

Mum was paying for extra services. Now she can't afford them. Does she have to keep paying for them?

The rest home is insisting that Mum pays for extra services she doesn’t want. Can they do this?

If my mother is admitted to hospital while she is in a rest home, does she need to keep paying for her bed at the rest home?

Residential Care Subsidy

How does a person apply for a Residential Care Subsidy?

What items and services are covered by the Residential Care Subsidy?

What are the current asset thresholds for the Residential Care Subsidy?

Will my parent need a financial means assessment if they want the Residential Care Subsidy?

Who pays for the person’s care when they are waiting for the result of the financial means assessment?

Residential Care Loan

What is a Residential Care Loan?

Can my parent get a Residential Care Loan?

How can my parent apply for a Residential Care Loan?

How much will my parent have to pay towards their care?

The amount your parent will have to pay depends on whether or not they receive the Residential Care Subsidy.

If your parent receives the subsidy, they will have $34.81 left over each week from superannuation after paying for care.

If your parent is not eligible for the subsidy, they will not have to pay more than the Maximum Contribution. The Maximum Contribution is the regional limit placed by the government on the cost of care. For example, in Christchurch, rest home residents do have to pay more than $848.75 per week as at 1 July 2013. The limit is the same for every level of care, including hospital and dementia care.

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What is the maximum amount that my parent will have to pay for residential care?

Your parent will pay the same amount for any level of care.

If your parent is eligible for the government subsidy, they will have $34.81 left over each week from superannuation after they have paid for their care.

If your parent is not eligible for the subsidy, they will not have to pay more than the Maximum Contribution. The Maximum Contribution is the regional limit placed by the government on the cost of care. For example, in Christchurch, rest home residents do not have to pay more than $848.75 per week as at 1 July 2013. The limit is the same for every level of care, including hospital and dementia care.

Your parent will have to pay extra if they want premium services, such as an ensuite.

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Is hospital level care more expensive than rest home level care?

The government will pay the cost difference between rest home and hospital level care.

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How can my parent find out about extra financial help that might be available?

The “Services for Seniors” brochure on the Ministry of Social Development website has information on financial assistance.

Click here to access the "Services for Seniors" brochure on the Ministry of Social Development website

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Mum was paying for premium services. Now she can’t afford them. Does she have to keep paying for them?

Your mother can decide to stop receiving premium services at any time. Tell the manager she does not want to receive premium services. Your mother’s Admission Agreement should be changed to state that she does not want to purchase premium services.

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The rest home is insisting that Mum pays for extra services she doesn’t want. Can they do this?

Your mother does not have to purchase premium services. The rest home must give your mother the option of only receiving a standard package of care. Your mother only has to pay for premium services if it is written into her Admission Agreement.

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If my mother is admitted to hospital while she is in a rest home, does she need to keep paying for her bed at the rest home?

Your mother will have to pay for her bed while she is in hospital. The government will pay the Residential Care Subsidy for three weeks while she is in hospital.

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Residential Care Subsidy

How can my parent apply for a Residential Care Subsidy?

The DHB assessor can give your parent the application forms which are available below. 

Your parent must have their income and assets tested to determine if they are under the threshold.

Call the Residential Subsidy Unit at Work and Income on 0800 999 727 if you need assistance.

Click here to access the application form for the Residential Care Subsidy

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What items and services are covered by the Residential Care Subsidy?

Accommodation and Facility Services

Healthcare

General Practitioner Services

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What are the current asset thresholds for the Residential Care Subsidy?

The threshold for single people and couples both in care is $215,135 in assets as at 1 July 2013.

Couples with one person in care can choose one of two thresholds:

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Will my parent need a financial means assessment if they want the Residential Care Subsidy?

Your parent will need a financial means assessment to get the Residential Care Subsidy. They can only get the Residential Care Subsidy if they are under the asset threshold. Their income will need to be assessed to determine if they are under the threshold.

Click here to see information on the financial means assessment

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Who pays for the person’s care while they are waiting for the result of the financial means assessment?

The government will pay for your parent's care for up to six weeks before the financial means assessment has been completed. Any care costs before the six weeks will be paid by your parent.

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Residential Care Loan

What is a Residential Care Loan?

It is an interest free loan, secured by a caveat over the person’s home. The loan is paid back when the person dies or the house is sold.

Click here to see further information on the Residential Care Loan

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Can my parent get a Residential Care Loan?

Your parent’s assets must be over the means test threshold for the Residential Care Subsidy. The reason¬†why they are over the asset threshold must be the value of their home.

Their assets, excluding the home, must be under these limits:

Your parent must have legal ownership of the home. Work and Income must be confident they can repay the loan.

Your parent may be able to get a loan if they do not meet these conditions. Work and Income offers loans in exceptional circumstances. Applicants are considered on a case-by-case basis.

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How can my parent apply for a Residential Care Loan?

Complete the Residential Care Loan application form. This is available from the Residential Subsidy Unit at Work and Income.

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