There have been many complaints regarding the amount of administration fees some providers have been charging clients for managing their home care packages. This has resulted in less care package funds being available to be used for what they are intended: help around the house, personal and clinical care, assistive equipment, and other supports to help people stay safe and independent at home.
From 1 January 2023, care management and package management charges will be capped at 20% and 15% of the respective package levels (there have been instances where there have been charges of up to 60%!). This reduction in administration and management charges will result in more package funds being available to meet care needs.
There is also a banning of exit fees and providers will be stopped from charging separate brokerage and subcontracting fees. This means that people will no longer be charged for changing service providers or exiting their home care package.
Home Care Package providers are required to review their current charges and discuss and agree to any pricing changes with their care recipients by 1 January 2023, to ensure they obtain informed consent for any changes.
