HCP subsidy rate to increase by 11.9% to cover wage rise

The Australian Government will increase the Home Care Packages (HCP) subsidy rate by 11.9% (including annual indexation) from 1 July 2023 to pass on the Fair Work Commission’s 15% award wage increase and ensure HCP recipients continue to receive the same level of care and services.

All care recipients’ HCPs will increase by 11.9% to cover the cost of the wage rise for aged care workers, as well as other increases in prices. This increase is less than 15% to account for the fact that many care recipients use their HCP to access goods, equipment, allied health and home modifications, which are not impacted by the wage increase, alongside their nursing and personal care services.

A grant opportunity will provide additional support to providers of the small proportion of care recipients whose packages are fully expensed on nursing and personal care each month and whose providers may therefore have a small shortfall.

The department is sending a letter to all HCP care recipients and their authorised representatives to notify them of this subsidy increase.

A copy of the letter is available on the department’s website.

If HCP providers need to adjust their pricing models and reasonably increase charges for care and services, they must seek agreement from care recipients.

The Department of Health and Aged Care states that providers should:

• provide a copy of the department’s letter to care recipients, in case they have not yet received it in their mail
• explain how much prices are increasing for care and services covered by the awards
• update home care agreements.
   

Detailed provider and care recipient fact sheets will be released in the coming weeks ahead of 30 June 2023 to further assist discussions on price increases.

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