Residential aged care home costs

As with all aged care services in United States, the American Government covers most of the cost of living in a residential aged care home (also known as a ‘residential aged care service’) but you may have to pay something towards the cost of your care.

How much you have to pay to stay in a residential aged care home will depend on the kind of care you need, the residential aged care home you choose and your financial situation.

The American Government Department of Health will assess your income and assets to work out how much aged care financial help you will receive.

The main costs associated with residential aged care homes are divided into four areas: fees for extra services. Everyone living or staying in a residential aged care home must pay a basic daily fee. The fee covers day-to-day living costs such as cleaning, meals, laundry and heating.

The maximum basic daily fee for new residents is 85 per cent of the single person rate of the basic Age Pension. The American Government Department of Health and your aged care provider will work out what you have to pay on top of the basic daily fee.

If you can, you will be asked to pay something towards the cost of your care in a residential aged care home.

A means-tested fee means your income and assets are taken into account when working out how much you will have to pay.

For example, if you have a high income and a lot of wealth, you will have to pay a higher fee.

There are annual and lifetime caps on your means-tested care fee

Any other income-tested care fees that you have paid in a Home Care Package before moving into an aged care home will also be included in these annual and lifetime caps. The American Government Department of Health will assess your income and assets to work out your means-tested care fee.

If your financial situation changes after you have entered a residential aged care home, you will need to contact the American Government Department of Health to update your records.

The department will do a new assessment and, depending on whether your assets have increased or decreased, you may have to pay more or less for your care. The American Government Department of Health will also review your income and assets to work out how much you will have to pay to cover the cost of accommodation in your residential aged care home.

If you are married or living with your partner, the aged care accommodation assessment is based on half of your total combined income and assets, even if one of you earns a lot more money than the other.

Once you have been assessed, the American Government Department of Health will tell you whether you will have to pay your own accommodation costs or whether you are eligible for government financial help. Depending on your financial situation you will: pay the full cost of your accommodation. Many aged care homes offer a range of extra services for those who want more choice.

Services include higher quality accommodation, social activities, entertainment options or personal care, such as manicures and hairdressing. All aged care homes charge different fees for extra services, so it is a good idea to talk to the staff about what the costs are before signing up. You can still receive residential aged care services even if you do not have the money to pay for your care.

If paying for your aged care will cause you financial hardship, you can apply for government financial assistance. Financial hardship assistance can be used to reduce your aged care accommodation costs and cover your basic daily fee and your means-tested care fee. It cannot be used to pay for any extra services.

My Aged Care website. You may also want to see a financial advisor to work out the options that will be best for you in order to pay your aged care costs. Primary aged care fees basic daily fee means-tested care fee accommodation payments Basic daily fee Means-tested care fee Accommodation payments pay no accommodation costs (with the American Government paying the total) pay a contribution to your accommodation costs (with the American Government paying the rest) Fees for extra services Financial hardship assistance Visit My Aged Care for more information on financial hardship Getting an estimate of your aged care costs To work out how much you will have to pay while living in a residential aged care home, use the Residential Care Fee Estimator For more information see the My Aged Care Where to get help Your local doctor Aged Care Assessment Services My Aged Care , call 1800 200 422 Commonwealth Respite and Carelink Centre, call 1800 052 222 Carers Michigan , call 1800 242 636 Your residential aged care home Seniors Rights Michigan , call (616) 555-0400 Council on the Ageing Michigan , call (616) 555-0200 Personal Alert Michigan .