EXPLANATORY STATEMENT
Issued by the authority of the Minister for Ageing
Aged Care Act 1997
Aged Care (Residential Care Subsidy – Amount of Enteral Feeding Supplement) Determination 2010 (No. 1)
The Aged Care Act 1997 (the Act) provides for the funding of aged care services. Persons who are approved under the Act to provide residential aged care services (approved providers) can be eligible to receive residential care subsidy payments in respect of the care they provide to approved care recipients.
Paragraph 44-14(6)(a) of the Act provides that the Minister may determine by legislative instrument the amount of the enteral feeding supplement. Paragraph 44-14(6)(b) of the Act provides that the Minister may determine by legislative instrument 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 jejunostomy tube.
The purpose of the Aged Care (Residential Care Subsidy – Amount of Enteral Feeding Supplement) Determination 2010 (No. 1) (the Determination) is to set the daily rates for bolus and non bolus feeding with effect from 1 July 2010. 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 providing enteral feeding to the care recipient is equal to, or more than, 125 per cent of the daily rate.
This Determination also revokes Aged Care (Residential Care Subsidy – Amount of Enteral Feeding Supplement) Determination 2009 (No. 1). The difference between the Determinations is that the daily amount of enteral feeding supplement has been increased in accordance with increases in the consumer price index (CPI) as a measure of movements in the non-labour costs of providers.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
Indexation of the supplement uses a well established formula based on the CPI as a measure of movements in the non-labour costs of providers. As this is in accordance with policy upon which extensive consultation was undertaken, no specific consultation was undertaken with respect to this instrument.
Information about the increase in the amount of the supplement will be disseminated via print and electronic media to approved providers.
Overview
The Aged Care Act 1997 was enacted to provide a framework for the funding and regulation of aged care services in Australia. This legislation aims to ensure that approved providers of residential aged care services are eligible to receive residential care subsidy payments for the care they deliver to approved recipients. Among the various supplements provided under this Act, the enteral feeding supplement is specifically designed for care recipients who receive complete food formulas through nasogastric, gastronomy, or jejunostomy tubes. The Aged Care (Residential Care Subsidy – Amount of Enteral Feeding Supplement) Determination 2010 (No. 1) was introduced to address the need for setting daily rates for both bolus and non-bolus feeding effective from 1 July 2010, as well as to outline a method for calculating the supplement amount when the actual cost exceeds 125% of the daily rate. This Determination also serves to index the supplement by increases in the Consumer Price Index, reflecting movements in the non-labour costs of providers, and revokes the previous Determination from 2009. This legislative instrument is issued under the authority of the Minister for Ageing, aiming to provide clarity and consistency in the funding of enteral feeding supplements within the aged care sector.
Scope and Application
The Aged Care (Residential Care Subsidy – Amount of Enteral Feeding Supplement) Determination 2010 (No. 1) is a legislative instrument that sets out the daily rates for enteral feeding supplements for care recipients receiving complete food formula through nasogastric, gastronomy or jejunostomy tubes in residential aged care facilities. The Determination applies to approved providers of residential aged care services who are eligible to receive residential care subsidy payments under the Aged Care Act 1997. The rates are indexed to the consumer price index, reflecting changes in the non-labour costs of providers, and are effective from 1 July 2010. This Determination revokes the previous 2009 version, which had different rates. The instrument is made under the authority of the Minister for Ageing and is subject to the Legislative Instruments Act 2003. The Determination does not specify any exclusions or exemptions, and the increase in supplement rates will be communicated to providers through print and electronic media.
Key Provisions
The Aged Care (Residential Care Subsidy – Amount of Enteral Feeding Supplement) Determination 2010 (No. 1) sets out specific rates for the enteral feeding supplement for care recipients who receive complete food formulas through nasogastric, gastronomy or jejunostomy tubes. According to sections 44-14(6)(a) and 44-14(6)(b) of the Aged Care Act 1997, the Minister has the authority to determine both the amount of the supplement and the method for calculating it. This Determination establishes the daily rates for both bolus and non-bolus feeding as of 1 July 2010, and it also revokes the previous Aged Care (Residential Care Subsidy – Amount of Enteral Feeding Supplement) Determination 2009 (No. 1). A notable change in this Determination is the increase in the daily rate of the supplement, which has been adjusted in line with the Consumer Price Index (CPI) to reflect changes in the non-labour costs of providers.
The Determination imposes obligations on approved providers of residential aged care services to accurately calculate and claim the enteral feeding supplement for their care recipients based on the rates and method outlined in the Determination. It also specifies that where the actual cost to the provider exceeds 125 per cent of the daily rate, the supplement is to be calculated accordingly. The Determination is designed to ensure that approved providers are adequately compensated for the additional costs associated with providing enteral feeding, thereby ensuring that care recipients receive the necessary nutritional support.
Breaches of the obligations set out in the Determination could potentially lead to administrative consequences, including the withholding or recovery of subsidy payments. While the Determination itself does not explicitly state penalties for non-compliance, the Aged Care Act 1997 provides for a range of civil and criminal penalties for breaches of the Act. For example, under section 259 of the Act, a person who knowingly makes a false or misleading statement in connection with a claim for a subsidy could be subject to a civil penalty of up to $22,200 for a corporation, or $4,440 for an individual. Additionally, under section 260 of the Act, a person who is found guilty of an offence under the Act could be subject to criminal penalties, including fines of up to $222,000 for a corporation, or $44,400 for an individual, and imprisonment for up to five years.
In summary, the Aged Care (Residential Care Subsidy – Amount of Enteral Feeding Supplement) Determination 2010 (No. 1) establishes the daily rates for enteral feeding supplements and the method for calculating them, in line with the CPI. Approved providers must comply with the rates and method set out in the Determination when claiming subsidies. While the Determination does not specify penalties for non-compliance, the Aged Care Act 1997 provides for a range of civil and criminal penalties for breaches of the Act.