EXPLANATORY STATEMENT
Statutory Rules 1985 No. 289
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.)
Regulations 5A and 6 of the Nursing Homes Assistance Regulations (the Regulations) were made pursuant to section 37 of the Nursing Homes Assistance Act 1974 (the Act).
Regulation 5A
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. Currently, the rate of $95.55 per week is prescribed in regulation 5A of the Nursing Homes Assistance Regulations (the Regulations).
In effect, the fee prescribed in regulation 5A of the Regulations is the standard financial contribution of nursing home patients towards the cost of their nursing home care. The rate currently prescribed is equivalent to 87.5% of the sum of the maximum standard rate of pension and rent assistance payable under the Social Security Act 1947.
The amount of patient contribution has been reviewed to take into account the increase in pension rates which will become effective on 1 November 1985. The rate of patient contribution will be increased to a level that will maintain the 87.5% rate.
Accordingly, the regulations will amend regulation 5A to increase the rate of the prescribed fee, for the purposes of paragraph 13(1)(a), from $95.55 to $98.70 per week.
Regulation 6
Paragraph 13(1)(d) 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 proposed increase in the fee prescribed under paragraph 13(1)(a) and the proposed increase in some rates of Commonwealth nursing home benefit, corresponding increases will be made to the weekly fees prescribed under paragraph 13(1)(d) of the Act.
Accordingly, the regulations will amend regulation 6 to increase each of the fees prescribed.
The regulations will come into operation on 14 November 1985, which is the first pension pay-day after the increase in pension rates occurs.
Overview
The Nursing Homes Assistance Act 1974 was enacted by the Australian Parliament to address the need for financial assistance to nursing home operators, ensuring that elderly and disabled individuals could access affordable care. This Act facilitates agreements between the Commonwealth and nursing home proprietors to provide financial support for nursing home operations and associated services. The Nursing Homes Assistance Regulations, specifically Regulations 5A and 6, were subsequently introduced to set out the details of fees payable by nursing home patients, including adjustments to these fees to reflect changes in pension rates. The objective of these amendments, as stated in the explanatory statement issued by the Minister for Community Services, is to maintain the balance between the financial contributions of patients and the cost of their care, ensuring that the prescribed fees accurately reflect the current economic conditions.
Scope and Application
The Nursing Homes Assistance Act 1974 and the associated regulations govern the provision of financial assistance to nursing home proprietors, ensuring that nursing home patients contribute a standard fee towards their care. This legislation applies to nursing home proprietors who enter into agreements with the Commonwealth to receive financial assistance for operating nursing homes and providing approved services. The regulations specifically address the fee structure, setting the standard weekly contribution by patients at a percentage of the maximum standard rate of pension and rent assistance. The Nursing Homes Assistance Regulations (Amendment) modifies these fees to reflect increases in pension rates and other relevant benefits, ensuring that the contribution percentage remains consistent. The amendment to regulation 5A adjusts the weekly fee from $95.55 to $98.70, while regulation 6 updates the fees for patients eligible for compensation or damages, aligning them with the new rates. These regulations have a national reach and apply across all states and territories of Australia, governed by the Commonwealth. The changes will come into effect on 14 November 1985, following the increase in pension rates.
Key Provisions
The Nursing Homes Assistance Regulations (Amendment) introduces several changes to the fee structure for nursing home patients under the Nursing Homes Assistance Act 1974 (the Act). Regulation 5A, which sets the weekly fee that nursing home patients are to pay, is amended to increase the prescribed fee from $95.55 to $98.70 per week. This adjustment is necessary to maintain the prescribed fee at 87.5% of the maximum standard rate of pension and rent assistance payable under the Social Security Act 1947, reflecting recent increases in pension rates effective from 1 November 1985. Regulation 6 pertains to fees charged to nursing home patients who have received, or are entitled to receive, compensation or damages from a State or Territory in relation to their nursing home care. This regulation prescribes fees equivalent to the sum of the fee under paragraph 13(1)(a) and the rate of Commonwealth nursing home benefit prescribed in regulation 28A of the National Health Regulations. In light of the proposed increases in both the fee under 13(1)(a) and the Commonwealth nursing home benefit, the fees under paragraph 13(1)(d) will also be increased.
The amendments impose certain obligations on nursing home proprietors. Firstly, they must adhere to the new fee rates set out in Regulation 5A and Regulation 6 for the patients who are subject to these provisions. These regulations ensure that the fee charged to patients is consistent with the prescribed rates, thereby maintaining the financial assistance agreement between the Commonwealth and the proprietor. Nursing home proprietors must update their billing systems and inform their patients of the revised rates promptly. Moreover, they must ensure that the new rates are reflected in all relevant documentation and communications, ensuring transparency and compliance with the amended Regulations.
Breach of these regulations can result in various consequences. While the explanatory statement does not explicitly outline the penalties for non-compliance, it is reasonable to infer that failure to adhere to the prescribed fees could lead to administrative or legal repercussions under the Act. Such breaches might result in financial penalties or legal actions being taken against the proprietor by the Commonwealth. Given the nature of the Act and the associated regulations, non-compliance could also impact the proprietor’s eligibility for future financial assistance agreements, potentially affecting the ongoing operation of the nursing home.