Residential Aged Care

Residential Aged Care and private health insurance

What is Residential Aged Care?

In Australia, Residential Aged Care is care for older people who can no longer live independently at home.

It includes accommodation and 24-hour personal and nursing care, including:

• assistance with day-to-day tasks such as cleaning, cooking and laundry
• help with bathing, dressing and going to the toilet
• access to health services, such as nursing, physiotherapy and podiatry
• social and emotional support
• entertainment.

The idea behind Residential Aged Care is to ensure older people receive the support they need to maintain their health and wellbeing.

What is a Residential Aged Care facility, nursing home or aged care home?

A Residential Aged Care facility, also known as a nursing home or aged care home, is a type of accommodation for older people who can no longer live at home and need help with everyday tasks or health care.

A Residential Aged Care facility provides:

• accommodation (including your room, furniture and bedding)
• services to meet your day-to-day needs (including meals, laundry and social activities)
• help with personal care (including bathing, eating, taking medications and getting health treatments)
• clinical care (including nursing and therapy services).

Before moving into a Residential Aged Care facility, you need an Aged Care Assessment Team (ACAT) assessment. This assessment will determine whether you are eligible for Residential Aged Care.

How much does Residential Aged Care cost?

The cost of living in Residential Aged Care varies.

There are 5 types of fee:

1. basic daily fee that every resident pays
2. means tested care fee that some people pay towards the cost of their care, depending on their means assessment
3. accommodation costs that some people pay depending on their means assessment  
4. additional service fees that some people pay for hotel-type services such as a preferred brand of toiletries
5. extra service fees that some people pay for hotel-type services such as specialised menus, higher quality linen or room furnishings.

Does private health insurance cover the cost of Residential Aged Care?

No. Private health insurance does not cover the cost of Residential Aged Care.

Does Medicare cover the cost of Residential Aged Care?

No. Medicare does not cover the cost of Residential Aged Care.

Does the Australian government help with the cost of Residential Aged Care?

Yes. The Australian government helps you pay for the cost of Residential Aged Care if you need assistance.

However, if you can afford it, you are expected to pay for living in Residential Aged Care.

You can find out more about whether the government will help you with the cost of living in Residential Aged Care on the myagedcare website.