Care Home Fees Soar By 14%

You may have noticed that the cost for long term care has risen sharply over the past few years. According to new findings, the average care home fees have risen by 14% in the last year and reports suggest that the reason for this increase is because local councils are cutting back on the amount they help the elderly with the fees and living costs due to funding cuts. As a result, residential homes are pushing up their prices to cover what the council would normally assist with. Thus, more people are looking into companies like Care For Family (www.careforfamily.com.au/) who are able to provide in-home care services for a lower fee.

Funding retirement home care can be nearly impossible for many seniors and many are not sure where to even begin. As care home fees continue to rise, it is essential that you understand these fees and who is responsible for paying them.

Who Pays?

If you are moving into a long term care facility, there are a number of funding options. The state may provide assistance for accommodation and other needs. You have to learn what specific options apply to you so that you can prepare for these costs if you are required to pay them out of pocket.

Local authority assistance is available if you meet the criteria for assistance. If your assets total less than 23,250 then you qualify for the local authority to provide you with financial assistance. If your assets are more than this amount however, you will be responsible for funding your own long term care.

Choice of Care Homes

Even if the state pays for your care home, you can choose the home that you reside in. You can even choose a home that is located in another country if you wish as long as you select one that can provide you with the specific care that you require. Understand that if you choose long-term care options that costs more than the local authority typically pays, you will need to find a third party to top up those fees. If your capital is below the guidelines you are not permitted to top up your own fees.

Selling Property

Many seniors have been forced to sell their property in order to fund their care. Social services can lend money for care and charge that loan against your home or other property but this loan could be limited and can also affect your benefit entitlements. Check with your social services office to learn more about this option.

Attendance Allowance

Many look for assistance that is not means tested and if you are funding your own care, Attendance Allowance may be an option for you. This is a non-taxable allowance that provides assistance to those who require care. The total amount of assistance depends on the level of care that you need and whether you are staying in a care home temporarily or permanently.

In Conclusion

Care home fees have increased dramatically over the past few years and are not looking to get any better in the near future. Learning more about your funding options and planning for your future is essential in meeting these costs when you require care.