Older people need strong pricing protections that genuinely reduce costs and stop older people being exposed to excessive or unreasonable pricing over the long term – not rushed measures that risk locking in inflated prices, COTA Australia says.
Chief Executive Officer of COTA Australia, Patricia Sparrow said new consumer protections for Support at Home announced by the Federal Government are a welcome necessary first step responding to the concerns of older Australians since the program began, while the harder work on long-term pricing continues.
“What matters is not the mechanism itself, but whether older people are genuinely protected from excessive and unreasonable pricing,” Ms Sparrow said.
“Older Australians have been dealing with sharp price increases, opaque prices and inconsistent practices since Support at Home began, and today’s measures are a step towards addressing those serious issues.
“Empowering the Aged Care Quality and Safety Commission to order refunds where providers are overcharging, publishing quarterly prices, and developing a more robust definition of reasonable pricing are sensible measures that will make a difference now.
Ms Sparrow welcomed the move to build on the removal of out-of-pocket costs for showering, dressing and continence, and to monitor pricing as those services transition to clinical care.
“That commitment will make a real difference to older people and monitoring pricing through the transition is exactly the kind the kind of oversight that’s needed.”
Ms Sparrow said it’s good to see the Minister listening to older people’s experience of pricing in the new system and taking steps to address that with stronger protections.
“COTA is looking forward to being able to do more to inform and educate older people on their rights and how to compare prices,” Ms Sparrow said.
“The working group with OPAN, Ageing Australia and the Aged Care Quality and Safety Commission will help define ‘reasonable’ pricing and improve choice and flexibility, including self-management and access to multiple providers, to reduce costs driven by the current single provider model.
“We will ensure older people’s voices are central, and back that with clear information and practical support for families navigating the system.”
Ms Sparrow said COTA understands the decision to take time to get pricing right before the introduction of formal caps in a year’s time, but older Australians need certainty that strong consumer protections – including around pricing – are in place now and will be strengthened.
“Getting pricing right matters enormously and it has to be done properly. A price cap that’s rushed out is one that risks not working, for older people or for the system that needs to support them into the future.
“The current period of higher than usual global volatility combined with the costs of transitioning to a new program means prices right now don’t necessarily reflect what steady state pricing should look like.
“Older Australians are already dealing with rising household costs and many simply do not have the capacity to absorb unpredictable increases in care costs. The system must guarantee that care remains affordable. In addition, the value of the package needs to keep pace with the costs of delivering care so that older people can continue to get the level of service they need.
“In the meantime, today’s measures will only be as strong as their enforcement.”
Ms Sparrow said pricing was not the only issue facing Support at Home.
“Wait times remain far too long. No one should be waiting more than 30 days to get the care and support they need. We’ll continue to raise this with the Government as a matter of priority.
“COTA will keep working alongside the Government, the Commission and the newly convened working group to make sure these new protections deliver, and that in the long term we build the aged care system that older people deserve.”
Media contact: Alana Mew, 0419 929 722 or Tamara Kotoyan 0430 291 890