Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

I am regularly contacted by constituents who tell me that their aged-care funds have been consumed by administrative fees at the expense of their care. And now, adding to the pain in the lead-up to the new Aged Care Act commencing on 1 November, there are reports of even further price hikes under the Support at Home program.

So let me share just one report, about Rosalie, who lives with Parkinson's disease, arthritis and other serious health conditions. Now, Rosalie had negotiated with her aged-care provider to retain two longstanding, trusted support workers by self-managing some package funding. However, as the Support at Home program neared, Rosalie was asked by her provider to sign a new contract. She was aghast to discover that she would now be charged an additional 10 per cent for essential items and, even more distressingly, a 100 per cent increase to retain her two trusted support workers. When Rosalie questioned the soaring costs, her provider explained that, due to new compliance and administrative obligations, they'd restructured their fees to remain operational. So, to this end, the provider introduced what they call an 'internal service price', which is a fee applied regardless of who provides the support. As a result, Rosalie has gone from paying $55 per hour for trusted supports to $110.

But it doesn't stop there, because Rosalie's story gets even worse. She had planned a trip to visit her terminally ill daughter before Christmas. Rosalie understood her provider had accepted the $3,000 quote for a support person to accompany her. But, to Rosalie's dismay, that quote was revoked and—surprise, surprise—when a new quote was forthcoming, the fee had nearly doubled. The explanation given by the provider was that the increased cost offsets losses under the new program and that offering a reduced rate when their financial position was untested under the Support at Home program was a business risk.

Aged-care providers shouldn't be balancing their books off the backs of vulnerable older Australians who are stretching every dollar to remain at home, independent and safe. Frankly, it's outrageous that funding intended for essential services, such as cleaning, transport and allied health, is being swallowed up by administration. Clearly, the government need to address this, and address it urgently, just as they also need to continue their work to ensure that the residential aged-care sector is put on a sustainable footing. Just yesterday, in my electorate, Southern Cross Care announced they are closing one of their facilities, leaving some 70 people to find new homes and 130 staff to find new work. There is obviously still much to be done.