Residential Care Subsidy

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Ministry of Health

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Rest Homes & Hospitals Cost of care Residential care subsidy

To qualify for Residential Care Subsidy you need to:

	Be a NZ citizen or resident, 65 years or older, some people aged 50-64 may also qualify.

	Have had a needs assessment that confirms you need care in a rest home or hospital indefinitely.

	Meet the Ministry of Health eligibility criteria for publicly funded services. This is a complex area. As a general rule you are eligible if you are a NZ resident and receive a NZ Work and Income benefit.

	Meet the financial criteria of the income and asset test administered by Work and Income on behalf of Ministry of Health.

	Receive services provided by a certified rest home or hospital with a District Health Board contract.

Residential Care Subsidy is not available for convalescent care or Accident Compensation Corporation clients.

The Work and Income Residential Subsidy Unit at Whangarei process financial means assessments for residential care for all New Zealand. You can phone them on 0800 999 727 or look at information on the Work and Income website.

Residents receiving Residential Care Subsidy

People in receipt of Residential Care Subsidy are required to pay NZ Super towards the cost of their care. They may also have to pay an income contribution such as interest from assets or 50% of private super payments. Any agreed additional costs e.g. ensuite, are not publicly funded.

It may be possible to claim subsidy into a retirement village Occupation Right Agreement unit certified for rest home or hospital level care. Eligibility criteria apply. Providers of this type of care must refund the accommodation portion (18%) of the District Health Board (DHB) contracted rate, Maximum Contribution. Please seek advice on how well this arrangement meets the needs of your family member.

Applying for a Residential Care Subsidy

Application forms are provided as part of the needs assessment process. Work and Income require the Needs Assessment Certificate to be filled in before they process the form. It is a good idea to make copies of the application and any related documents. It is your responsibility to post to:

Work and Income, Private Bag 9032, Whangarei 0148

Payment can be backdated 90 days from the time application is received by Work and Income. You are responsible for the cost of care until subsidy payments begin. Discuss with care provider if this is a problem.

You can test your eligibility for Residential Care Subsidy at any time through Work and Income.

If you receive Residential Care Subsidy, most of your NZ Super is paid to the care facility. You can arrange an automatic payment from your bank account or ask Work and Income to pay it directly to the facility. The rest of your NZ Super will be paid to you as a fortnightly personal allowance. You also receive an annual clothing allowance paid in April each year.