Catholic Health supports scheme to protect aged care residents
Catholic Health Australia bas backed a government scheme announced yesterday that will strengthen protection for residents of aged care homes who have paid accommodation bonds.
Federal Minister for Ageing Julie Bishop announced yesterday that new legislation will be introduced to guarantee residents' bond balances will be repaid if an aged care provider becomes bankrupt or insolvent and to ensure there are appropriate prudential standards for accommodation bonds.
Catholic Health Australia CEO Francis Sullivan described the Government action as a "responsible move" that "should provide residents with greater confidence that their loans to aged care providers are secure".
"It is sensible for the Government to take the lead responsibility for accommodation bond protection and we are pleased that the scheme does not impose administrative costs onto to providers," he said. "Now with a better prudential scheme in place and the fact that accommodation bonds have been excluded from the pension asset test it is time to extend the use of the loan scheme into the lower reaches of high care.'
"As it presently stand residents in modest assets are cross subsidising the accommodation costs of better off high care residents. Extending the bond scheme into longer staying high care resident categories will make the system fairer and more viable. We would encourage the Minister to seize the day and build on this welcome initiative."
Prudential scheme opens way to extend bonds (Catholic Health Australia 15/9/05)
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Catholic Health Australia
Catholic Health supports fair go for hostel residents (CathNews 13/2/04)
16 Sep 2005