The Productivity Commission's (PC) draft report, ‘Caring for Older Australians' paints a damning picture of the current aged care systems in place and recommends fundamental changes - new funding models, more consumer control, less government regulation and means testing aged care recipients.
The PC's draft report is highly critical of current systems that can be bafflingly complex for consumers and overly regulated by the Government's trying to keep track of their billons.
Most importantly, the draft report proposes a timetable for reforms and the establishment of a high level implementation taskforce.
User pay
It recommends increasing provider completion through more consumer controlled self - funding and the relaxation of accommodation caps. The user will pay, although the report recommends safety net funding for the financially disadvantaged.
Abolishing the distinction between high and low care accommodation is also proposed, as is removing restrictions on the number of community care packages and residential bed licences to allow providers to respond to demand.
Under the draft recommendations, those who could afford it would be required to contribute up to 25% with a sliding scale, reducing contributions based on means assessments.
Regulations, reporting and agencies
A new ‘Australian Seniors Gateway Agency' is proposed to "make the aged care system easier to access and navigate" and the report recommends the abolition of the position of aged care commissioner and the many ''unnecessary, complex and burdensome regulations''.
It suggests consideration of an Aged Care Division within the Administrative Appeals Tribunal (AAT). This would be aged care's solo agency, an aged care one stop shop, and a ''gateway'' to the system for consumers, carers and health professionals - the agency would provide access to a range of diverse but linked services - everything from basic information, health assessments to where to find the care needed.
The report also recommends the establishment of a new regulatory agency - the Australian Aged Care Regulation Commission (AACRC). This agency would administer compliance, accreditation, reviews but also recommend the pricing of care and subsidies.
To alleviate the reporting burden on providers, the report recommends a streamlined reporting mechanism, based on Standard Business Reporting and allowing providers to disclose information on request, rather than on demand.
