Change to asset thresholds for residential care subsidy and change to the maximum contribution for residential care

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1 25 June 2014 Dear Resident Change to asset thresholds for residential care subsidy and change to the maximum contribution for residential care Note: if you are already receiving a Residential Care Subsidy, this letter does not affect you and you do not need to do anything. For residents in residential care, there is a limit on what you have to pay for the package of services that you have been assessed as needing. This is known as the maximum contribution. The test used for determining whether those assessed as requiring long-term residential care qualify for a residential care subsidy is known as a financial means assessment. A financial means assessment takes account of assets that the person in residential care has to the extent they are over and above a certain value, known as an asset threshold. This letter is to advise you that on 1 July 2014 changes to both the maximum contribution and the asset threshold tests used to make a financial means assessment will come into effect. This may mean that you may now be eligible for a residential care subsidy, as the result of your financial means assessment may have changed. You have the right to apply for a review of your financial means assessment under the Social Security Act. How to do this is set out below. Maximum Contribution The maximum contribution is set by the Director-General of Health and changes whenever the District Health Board changes the contract price paid to providers for rest home level care. The maximum contribution may differ from region to region within New Zealand. 19 Lambie Drive, Private Bag , Manukau City, AUCKLAND 2241 Telephone: Facsimile: Internet

2 As of 1 July 2014 the maximum contribution applicable to you for your region has changed, as referred to in the attached document Maximum Contribution Applying in Each Territorial Local Authority Region from 1 July This is the maximum amount that you will need to pay for contracted care services you have been assessed as needing. Please note: if you are receiving Residential Care Subsidy these changes do not apply to you. Asset Threshold Asset thresholds are adjusted annually with new thresholds coming into effect on 1 July each year. The value of assets that you may retain (asset threshold) and still be eligible for subsidised residential care from 1 July 2014 are as follows: Asset Level A single or widowed person in care $218,423 Couples with both partners in care $218,423 Couples with one partner in care Either $119,614 (the family home, car, and a pre-paid funeral of up to $10,000 are exempt assets) Or $218,423 total assets How to apply for a financial means assessment The changes to the asset thresholds may mean that the result of your financial means assessment has changed and you may qualify for a residential care subsidy. This means that the amount that you pay for your residential care could change. You have the right to apply for a review of your financial means assessment. If you wish to apply for a review of your financial means assessment to see whether the changes to the asset thresholds affect the amount that you have to pay for your residential care, please contact your local needs assessment and service coordination agency who will provide you with the necessary application form. Alternatively, contact Specialised Processing Services at the Ministry of Social Development toll free on

3 When you receive the form you need to complete it, and send it to: Specialised Processing Services Ministry of Social Development Private Bag 9032 Whangarei The effect of any change to a financial means assessment will only be backdated for 90 days so it is in your best interests to apply for a review of your financial means assessment, should you wish to, as soon as possible. Should you have any queries on financial means assessments, maximum contributions, asset thresholds, and/or applying for a review, please contact Berta Nicoll on (09) ext 8422 or roberta.nicoll@middlemore.co.nz Yours sincerely Dana Ralph-Smith Planning & Funding Manager Health of Older People Counties Manukau District Health Board

4 Proof for New Zealand Gazette, 19/6/2014, Notice: go3744 Maximum Contribution Applying in Each Territorial Local Authority Region from 1 July 2014 Under section 152 of the Social Security Act 1964, the Director-General of Health is required to notify the maximum contribution that applies in each region for long-term aged residential care. The maximum contribution is the maximum weekly amount (inclusive of GST) that a resident assessed as requiring long-term residential care (through a needs assessment and service coordination agency) is required to pay for contracted care services provided to them in the region in which their rest home or continuing care hospital is located. Contracted care services are services provided to needs-assessed people in a rest home or continuing care hospital that has a contract with a district health board. The services provided are those necessary to meet the person s assessed care needs in accordance with the agreement between the district health board and the residential care provider. This agreement covers residents who are: eligible for the residential care subsidy (under section 141 of the Act); or entitled to have funding paid to cover the difference between the maximum contribution and the cost of contracted care services provided to them (under section 140 of the Act). The maximum contribution is the same for all residents regardless of the type of contracted care services they receive. The maximum contribution set by this notice applies from 1 July 2014 and replaces the previous maximum contribution notice published in the New Zealand Gazette, 27 June 2013, No. 83, page It is equivalent to the most recent, nationally agreed, rest home contract price applying to residential care facilities in each territorial local authority region. The maximum contribution will change only when a new maximum contribution is gazetted. New maximum contributions will reflect changes to rest home contract prices that usually result from the annual review of the residential care contract between district health boards and residential care providers. The daily GST exclusive contract price for rest home services has been increased by 1%, GST has been added and the result has been multiplied by seven to determine the new maximum contribution. The calculations are rounded to two decimal places at each step. Region: Territorial Local Authority District Health Board Maximum Contribution Weekly (GST Inclusive) Far North District Northland $ Whangarei District Northland $ Kaipara District Northland $ Rodney District Waitemata $ North Shore City Waitemata $ Waitakere City Waitemata $ Auckland City Auckland $ Manukau City Counties Manukau $ Papakura District Counties Manukau $ Franklin District Counties Manukau $ Thames-Coromandel District Waikato $ Hauraki District Waikato $ Waikato District Waikato $ Matamata-Piako District Waikato $ Hamilton City Waikato $ Waipa District Waikato $ Otorohanga District Waikato $ South Waikato District Waikato $ Waitomo District Waikato $ Taupo District Lakes $ Western Bay of Plenty District Bay of Plenty $850.92

5 Tauranga District Bay of Plenty $ Rotorua District Lakes $ Whakatane District Bay of Plenty $ Kawerau District Bay of Plenty $ Opotiki District Bay of Plenty $ Gisborne District Tairawhiti $ Wairoa District Hawke s Bay $ Hastings District Hawke s Bay $ Napier City Hawke s Bay $ Central Hawke s Bay District Hawke s Bay $ New Plymouth District Taranaki $ Stratford District Taranaki $ South Taranaki District Taranaki $ Ruapehu District Waikato $ Wanganui District Whanganui $ Rangitikei District Whanganui $ Manawatu District MidCentral $ Palmerston North City MidCentral $ Tararua District MidCentral $ Horowhenua District MidCentral $ Kapiti Coast District MidCentral and Capital & Coast $ Porirua City Capital & Coast $ Upper Hutt City Hutt Valley $ Lower Hutt City Hutt Valley $ Wellington City Capital & Coast $ Masterton District Wairarapa $ Carterton District Wairarapa $ South Wairarapa District Wairarapa $ Tasman District Nelson Marlborough $ Nelson City Nelson Marlborough $ Marlborough District Nelson Marlborough $ Kaikoura District Canterbury $ Buller District West Coast $ Grey District West Coast $ Westland District West Coast $ Hurunui District Canterbury $ Waimakariri District Canterbury $ Christchurch City Canterbury $ Banks Peninsula District Canterbury $ Selwyn District Canterbury $ Ashburton District Canterbury $ Timaru District South Canterbury $ Waimate District South Canterbury $ Waitaki District Southern $ Central Otago District Southern $ Queenstown-Lakes District Southern $ Dunedin City Southern $ Clutha District Southern $ Southland District Southern $827.82

6 Gore District Southern $ Invercargill City Southern $ Copies of the maximum contribution amounts and other information about income and asset testing can be found on the Ministry of Health website at: Needs assessment and service coordination agencies, Specialised Processing Services, Work and Income of the Ministry of Social Development and residential care providers will also be able to advise the maximum contributions applying in each region. Dated at Wellington this 12th day of June CHAI CHUAH, Acting Director-General of Health.