 Ministry of Health
NZ Government
©Copyright
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Seniorline |
Rest
Homes & Hospitals Cost
of care Guide
These terms are commonly used when talking about residential care:
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Maximum contribution |
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Fees for all levels of care are
capped at the Maximum Contribution rate for both subsidised
and privately paying residents, unless you agree to pay for
extra services. Payment of Maximum Contribution covers
‘contracted care services’ which are detailed in the
contract between the care provider and District Health
Board. The maximum contribution will vary depending on which
area the hospital or rest home is located in. Click on 'more
info' button for the current maximum contribution rates. |
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Top-up subsidy |
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Where the District Health Board (DHB) contract rate is greater than
maximum contribution i.e. for hospital or dementia level care, the
difference is covered by Top-Up subsidy. All residents needs
assessed as requiring dementia or hospital care receive Top-Up.
There is no application process, it is organised by the Needs
Assessor. |
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Contracted care services |
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These are the services covered
by payment of Maximum Contribution; they are detailed in the
national Age Related Residential Care Services Agreement
held between care providers and District Health Boards.
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Residential care subsidy |
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This subsidy provides financial
assistance toward costs associated with long-term
residential care in a rest home or hospital. To access
subsidy you must have a needs assessment stating you require
residential care indefinitely. The application form for
residential care subsidy (Financial Means Assessment form)
is available from your needs assessor. Work and Income
assess both your assets and income to determine eligibility
and how much you should contribute towards cost of care.
Work and Income allow you to ‘test’ eligibility for subsidy. |
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Residential care loan |
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If property ownership places you
above the asset level for Residential Care Subsidy but you
have little cash or other assets, you may qualify for a
Residential Care Loan. To access the Loan you apply for
Residential Care Subsidy and answer additional questions
relating to the Loan. For advice on how to fill the
application form contact the Residential Subsidy Unit at Whangarei, phone 0800
999 727. Loans are interest-free and repayable when the home
is sold or within twelve months from your estate. |
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Financial means assessment
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This refers to the asset and
income testing process conducted by Work and Income on
behalf of District Health Boards to determine if a person is
financially eligible for Residential Care Subsidy. Once the
asset threshold is met, income is assessed to calculate how
much you can contribute toward the cost of care; shortfall
between your contribution and the maximum contribution rate
is met by subsidy. Financial Means Assessment forms
(application for Residential care Subsidy / Loan) are
available from your needs assessor. |
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Admission agreement |
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This document provides
protection for resident and rest home / hospital by setting
out responsibilities for each. It should specify any
additional charges the resident will have to meet. Ideally
you should read and understand the Agreement before making a
commitment to any rest home / hospital. |
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Extra charges |
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Rest homes and hospitals can
charge extra for services outside their contact with
District Health Boards, for example, large room or ensuite
toilet. The charges require resident
agreement and should be documented in the Admission
Agreement. Residents have choice regarding additional
services and can decide at any time to receive or cease
extra services. This applies to residents receiving
Residential Care Subsidy and privately paying residents. |
Flow chart overview
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