EXPLANATORY STATEMENT
AGED CARE ACT 1997
SECTION 44-14
DETERMINATION OF RATES OF FINANCIAL ASSISTANCE
(ACA Ch. 3 No. 11/2007)
ENTERAL FEEDING SUPPLEMENT
Paragraph 44-14(6)(a) of the Aged Care Act 1997 (the Act) provides that the Minister may determine in writing the amount of the enteral feeding supplement. Paragraph 44-14(6)(b) of the Act provides that the Minister may determine a method for working out the amount of enteral feeding supplement for a particular day.
The enteral feeding supplement is a daily supplement for care recipients receiving a complete food formula by means of a nasogastric, gastronomy or jejeunostomy tube. This determination sets the daily rates for bolus and non bolus feeding to be paid.
The determination also outlines a method for calculating the amount of enteral feeding supplement to be paid where the actual cost to the approved provider of administering enteral feeding to the care recipient is equal to, or more than, 125% of the daily rate.
This determination sets the enteral feeding rate with effect from 1 July 2007.
All residential care supplement rates are indexed on 1 July each year. The index for the enteral feeding supplement is based on the Consumer Price Index.
Consultation
As the indexation of this supplement uses a well established formula for indexation, no specific consultation with industry was undertaken with respect to this instrument.
Overview
The Aged Care Act 1997, enacted by the Parliament of Australia, addresses the need to provide adequate financial assistance to care recipients receiving enteral feeding through a nasogastric, gastronomy, or jejunostomy tube. This legislation aims to ensure that the financial burden of providing specialised nutritional support does not disproportionately impact the care providers or the recipients. The determination of rates for the enteral feeding supplement, as outlined in the Act, ensures that there are standardised daily rates for both bolus and non-bolus feeding, which are indexed annually based on the Consumer Price Index. This approach helps in maintaining the financial viability of the care providers while ensuring the quality of care for the recipients. The determination, effective from 1 July 2007, was introduced to standardise the financial assistance and to provide a clear method for calculating the supplement, particularly when the actual cost exceeds the set daily rate.
Scope and Application
The Aged Care Act 1997, as amended by the F2007L02039 determination, applies to care recipients receiving a complete food formula through enteral feeding methods such as nasogastric, gastronomy, or jejeunostomy tubes in residential aged care facilities. This legislation mandates the Minister's authority to establish and adjust the daily rates for enteral feeding supplements, ensuring that the rates are indexed annually on 1 July based on the Consumer Price Index. The determination provides clear guidelines for calculating the supplement amount, particularly when the cost incurred by the approved provider surpasses 125% of the set daily rate. The Act's application is confined to the Commonwealth level, impacting entities and individuals involved in the provision of aged care services within Australia. The determination does not specify any exclusions or exemptions but relies on the existing framework of the Act for its implementation, extending its reach through subordinate instruments to ensure consistent and fair application across the sector.
Key Provisions
The primary operative sections relevant to this determination are 44-14(6)(a) and 44-14(6)(b) of the Aged Care Act 1997. Section 44-14(6)(a) allows the Minister to determine the amount of the enteral feeding supplement, while section 44-14(6)(b) permits the Minister to establish a method for calculating this supplement for a specific day. The determination sets the daily rates for both bolus and non-bolus feeding, which are applicable to care recipients receiving complete food formulas through nasogastric, gastronomy, or jejeunostomy tubes. Additionally, it includes a method for calculating the supplement when the actual cost to the approved provider exceeds 125% of the daily rate. These rates became effective from 1 July 2007, and are subject to annual indexation based on the Consumer Price Index, with the indexation date being 1 July each year.
The Aged Care Act 1997 imposes obligations on the Minister to determine the financial assistance rates for enteral feeding and to establish a method for calculating these rates. The determination provides specific details on the daily rates for enteral feeding, ensuring clarity and consistency in the provision of financial assistance. Furthermore, the Act requires that all residential care supplement rates, including the enteral feeding supplement, be indexed annually based on the Consumer Price Index. This ensures that the financial assistance keeps pace with inflation, maintaining the value of the supplement over time.
The Act does not explicitly outline offences, penalties, or civil and criminal consequences for breaches of the enteral feeding supplement provisions. However, any non-compliance with the determined rates or methods by approved providers could potentially lead to disputes over payments, which may be subject to review and adjudication under the general provisions of the Act. It is important for providers to adhere to the determined rates and calculation methods to avoid any potential financial discrepancies or legal challenges.