EXPLANATORY STATEMENT
Statutory Rules 1985 No. 87
SUBJECT: NURSING HOMES ASSISTANCE ACT 1974
NURSING HOMES ASSISTANCE REGULATIONS (AMENDMENT)
(Issued by Authority of the Minister for Community Services, Senator the Hon Don Grimes.)
Regulation 5A of the Nursing Homes Assistance Regulations (the Regulations) was made pursuant to section 37 of the Nursing Homes Assistance Act 1974 (the Act). Regulation 5A provides the prescribed fee the proprietor of a nursing home is to charge nursing home patients under paragraph 13(1)(a) of the Act.
Sub-section 12(1) of the Act provides that the Minister may approve an agreement between the Commonwealth and a nursing home proprietor with respect to the provision, by the Commonwealth, of financial assistance in connection with the carrying on of a nursing home or the provision of approved services in association with the carrying on of a nursing home. Paragraph 13(1)(a) of the Act provides that any such agreement is to include a provision under which the proprietor is to charge a fee of $32 per week, or such other rate as is prescribed, for each nursing home patient, other than certain specified patients.
In effect, the fee prescribed in regulation 5A is the standard financial contribution of nursing home patients towards the cost of their nursing home care. Since 1978, and until 1 November 1984, the rate of the patient contribution prescribed was equivalent to 87.5% of the sum of the maximum standard rate of pension and supplementary (rent) assistance payable under the Social Security Act 1947. On 1 November 1984, the minimum rate of financial contribution was increased by 42.45 per week, a rate which was 44.20 per week less than the increase which would have occurred through the application of the 87.5% formula.
The amount of patient contribution has been reviewed following the increase in pension rates which became effective on 2 May 1985. The rate of patient contribution will increase to restore the 87.5% rate.
Accordingly, the regulations will increase the rate of patient contribution to the new level, from $89.25 to $95.55 per week.
Paragraph 13(1)(d) of the Act prescribes the fees to be charged to nursing home patients in nursing homes approved under the Act where the patient has received, has established a right to receive, or may be entitled to receive, a payment by way of compensation or damages under a law of a State or Territory in respect of the nursing home care to which the fees relate. Regulation 6 of the Regulations prescribes fees for the purposes of paragraph 13(1)(d). These fees have been set at a rate equivalent to the sum of the fee prescribed under paragraph 13(1)(a) of the Act, and the rate of Commonwealth nursing home benefit prescribed in regulation 28A of the National Health Regulations. With the increase in the fee prescribed under paragraph 13(1)(a), corresponding increases will be made to the weekly fees prescribed by paragraph 13(1)(d) of the Act.
The regulations will increase each of the weekly fees prescibed in regulation 6 in line with the increase in the weekly fee prescribed under paragraph 13(1)(a).
The regulations will come into operation on 13 June 1985, which is the earliest practicable date for their commencement.
Overview
The Nursing Homes Assistance Act 1974 was enacted to provide a framework for the financial assistance of nursing homes and to establish a standard fee for nursing home patients. This legislation aimed to address the gap in funding for nursing home services, ensuring that patients contribute a fair share towards the costs of their care while also receiving necessary support from the Commonwealth. The Act was enacted by the Parliament of Australia and its policy objective is to facilitate the provision of nursing home care by setting a prescribed fee for patients. The regulations under the Act, including those amending the fee structure, are issued by the Minister for Community Services, as exemplified by the Nursing Homes Assistance Regulations (Amendment) Statutory Rules 1985 No. 87. These amendments were made to adjust the patient contribution rate in response to changes in pension rates, ensuring the financial sustainability of nursing homes while maintaining the balance between patient contributions and government support.
Scope and Application
The Nursing Homes Assistance Regulations (Amendment) Statutory Rules 1985 No. 87 pertains to the Nursing Homes Assistance Act 1974 and its associated regulations, focusing primarily on the fees that nursing home proprietors can charge to patients. This amendment applies to the proprietors of nursing homes who are approved under the Act, requiring them to charge a prescribed fee to patients for their nursing home care, unless the patients are within certain specified exemptions. The amendment adjusts the fee from $89.25 to $95.55 per week, effective from 13 June 1985, to align with the increase in pension rates and restore the patient contribution to 87.5% of the maximum standard rate of pension and supplementary (rent) assistance. Additionally, the amendment updates the fees for patients who have received or are entitled to receive compensation or damages for nursing home care, ensuring they are in line with the new prescribed weekly fee. The regulations are applicable nationally across Australia, impacting all nursing homes that receive financial assistance from the Commonwealth.
Key Provisions
The Nursing Homes Assistance Regulations (Amendment) modify the fee that nursing home proprietors must charge patients, as prescribed in Regulation 5A (subsection 13(1)(a) of the Nursing Homes Assistance Act 1974). This regulation stipulates that nursing home proprietors must charge a weekly fee of $95.55 per patient, except for specified patients. The Act allows the Minister to approve agreements providing financial assistance to nursing homes, and these agreements must include a fee provision. The fee change aligns with 87.5% of the maximum standard rate of pension and supplementary assistance payable under the Social Security Act 1947.
The amendment to Regulation 5A also affects fees for patients who may receive compensation or damages related to nursing home care. As per subsection 13(1)(d) of the Act and Regulation 6 of the Regulations, these fees will increase in line with the new weekly fee. The amendment ensures that the fees for these patients will be the sum of the prescribed fee and the Commonwealth nursing home benefit prescribed in regulation 28A of the National Health Regulations. The Regulations are set to come into effect on 13 June 1985.
The Act imposes specific obligations on the parties involved, including the requirement for the Minister to approve agreements with nursing home proprietors. These agreements must include provisions for the fees to be charged to patients, as outlined in subsection 12(1) and paragraph 13(1) of the Act. Nursing home proprietors must adhere to the prescribed fee rates, ensuring they charge the correct amount to patients, as stipulated in Regulation 5A and Regulation 6.
Failure to comply with the prescribed fees or the terms of the approved agreements may lead to legal consequences. Although specific penalties are not mentioned in the Regulations, non-compliance with the Act or Regulations could result in enforcement actions. Such actions may include fines, legal proceedings, or other penalties as prescribed by law. The precise penalties would depend on the specific breach and the jurisdiction's regulatory framework.