Representative and advocacy body Australian Independent Retirees (AIR) is calling for more transparent and enforceable pricing benchmarks for home aged-care services.
The group made the recommendation in its submission to the Independent Health and Aged Care Pricing Authority (IHACPA) Consultation Paper on the Pricing Framework for Australian Support at Home Aged Care Services 2027/28.
AIR chief advocate Wayne Strandquist pointed out the absence of such benchmarks makes retirees vulnerable to opportunistic providers and potentially excessive charges for aged-care services.
“Private providers can charge self-funded retirees essentially whatever they can get away with. That’s very frustrating for self-funded retirees that they are in the position of price takers because there is no pricing benchmark or schedule,” Strandquist said.
AIR members have expressed concerns around escalating costs for in-home care, with many reporting higher hourly rates, costs such as $100 for assistance with showering and other charges that are difficult to understand or justify.
“Many retirees are bypassing the regulated in-home care system and engaging services privately. This trend could ultimately lead to the creation of a two-tier pricing system that exposes retirees to unregulated providers and potential exploitation,” Strandquist warned.
He welcomed Minister for Health and Aging, Minister for Disability and the NDIS (National Disability Insurance Scheme) Mark Butler’s announcement today that some services provided through the Support at Home program, such as showering, continence management and dressing, would now be free of charge alongside clinical care.
“We’ve heard community concerns on some aspects of the program, particularly around showering,” Butler told the National Press Club in Canberra.
“Dignity in older age through a world-class aged-care system is the least our parents and grandparents deserve.”
Strandquist suggested Commonwealth Seniors Health Card holders, who often have modest incomes, run the risk of ultimately exhausting their retirement savings if they are paying too much for home care.
As such, AIR is calling for targeted pricing adjustments or supplements to ensure this cohort is not disadvantaged.
