Report on the Protection of Residential Aged Care Accommodation Lump Sums released
ACFA concluded that the bank guarantee, private insurance and pooled insurance options are either likely not to be viable. That the benefits of any scheme must outweigh its cost and that no organisation should allowed to opt out of a national scheme.
The options left are:
1 Retain the existing Scheme, noting that the decision to implement a retrospective levy on providers following a default event rests with the Minister;
2 Retain the existing Scheme, but automatically trigger a retrospective levy on all providers following each future default event;
3 Create a guarantee fund pool through a prospective levy on all providers.
That past scheme payouts should be quarantined and not passed onto providers. It appears the 3 option is favoured as it brings the most certainty to providers.
Read the full report at