Trying to manage nursing home costs can be a difficult exercise when retirees are unaware about the essentials.
Although they understand that the accommodation won’t come free, there can be confusion around exactly what is involved in the billing and how they can ensure their quality of life is not compromised without losing their retirement savings and investments.
Here we will take stock of the general costs associated with making the transition, allowing everyone to understand what is involved and what options are on the table.
Means Test Fee
The means test is an exercise that allows establishments and providers a chance to assess viability for individuals and determine how much they can afford for their own needs. This is a universal policy that is part and parcel of all nursing home costs for retirees. This is a fee that is maxed out at $27,532.59 in 2019 but there are changes and fluctuations that will differentiate depending on the policy and the means of the individual at the time.
Basic Daily Fee
The basic daily fee is an element that has to be managed by the participant as it covers a number of bases. No one can work around this department when calculating nursing home costs as it ranges from assistance with daily living to washing and cleaning, providing meals, covering certain medical prescriptions and heating or cooling rooms around the clock. To have professional aged care professionals working around the clock in these instances, the basic daily fee ensures they are covered.
The accommodation payment is part of what has to be calculated with nursing home costs but unlike those fees and prices, there are options at hand for the participant. On one side, they have the ability to provide a lump sum payment that works as a refund. This is what is known as the Refundable Accommodation Payment (RAD), refunding the money like a loan agreement after deducting the costs of living at the facility. Then there is the Daily Accommodation Payment (DAP) that operates like a rental agreement, organising a set of transactions on a per-day basis.
There are certain luxuries and amenities that can be fitted into a package for clients. These will be factored into the equation when surveying nursing home costs for participants. This can include access to a pool, an entertainment system, satellite television, a gym, a club, hairdresser and WiFi access among other amenities. Some constituents do not have the means of covering those continual costs, but others will and they will like to access them where necessary.
Advice and Representation
Those individuals who are engaging specialist consultations with firms and providers will have to think about these payments when assessing nursing home costs in total. Depending on their reputation and resources to position participants with the best nursing home outlets in the area, this will be deemed an exercise that is value for money. Particularly for those individuals who are managing large portfolios and attempting to diversify assets and property, this strategy is a means of minimising risk and maximising opportunity when there are openings in the market and public policy to leverage. The means test is a universal practice that only goes surface deep on the bank balance, whilst these expert operators can provide a wider picture perspective.
The good news for retirees who are making the transition and have to manage these fees is that they have help to get on top of their nursing home costs. With professional services, partners, close family members and next of kin all in a position to offer their assistance, individuals do not have to encounter these challenges alone.