Residential care costs - unlocking financial assistance and simplifying the application process

Residential care costs

- unlocking financial assistance and simplifying the application process

and why it’s essential to have legal expertise you can trust

Residential Care Subsidy and Loan

  • If you are over 50 and are assessed as needing long-term residential care in a hospital or rest home you may be able to get a residential care subsidy.

    If you are under 50 you did not qualify for the residential care subsidy and will need to contact your District Health Board.

    If you are 50-64 and single with no dependent children, you automatically meet the assets test, but there is an income test. If you are under 65 and have a partner there is no income or assets test.

  • A Residential Care Subsidy is a payment made by Work and Income to the residential care provider to cover some or all of the cost of care. A Residential Care Loan is an interest-free loan that can be granted towards the cost of care.

    The cost of residential care at a hospital or rest home is expensive and can be difficult to manage for some. Subsidies and loans are offered to ease the financial burden.

    A Residential Care Subsidy (RCS) can cover some or all of the costs and is paid directly to the care facility. The amount paid depends on the value of the applicant's assets and income.

  • A Residential Care Loan (RCL) may be available for those who are asset rich (they own their home) but cash poor. The loan is repaid when the applicant sells their home or passes away.

Applying for RCS and RCL

  • If you or a loved one require residential care, it’s important to find out your eligibility for an RCS or RCL as soon as possible.

    Subsidies can only be backdated up to 90 days before the date the application is received by Work and Income.

  • .Step 1

    Your care needs are assessed by a Needs Assessment Service Coordinator (NASC). If they decide that residential care is required, they will provide you an RCS/RCL application form to complete, which will enable Work and Income to assess your eligibility for financial support.

  • Involves completing a complex 20-page application form and providing supporting documentation.

    Income and assets are assessed for both the applicant and their partner.

How Ross Holmes Virtual Lawyers Limited can assist you

  • It is important that no mistakes are made, and that all information is supplied, to help you avoid paying the rest home fees until the application is accepted.

     If the application is not completed correctly, further information will be required by Work and Income, or your application may be rejected. If your application is rejected you will have to go through a lengthy review process, which can be costly and uncertain.

  • Work and Income do not publish their rulings and unless you are dealing with them regularly you will not know what you should be doing. The hoops that Work and Income will make you jump through are detailed here: https://www.workandincome.govt.nz/map/income-support/extra-help/residential-care-subsidy/available-resources.html.

    Ross Holmes Virtual Lawyers Limited can assist you to correctly complete the parts of the application form which you are unable to complete (in particular the questions dealing with trusts, asset sales, and gifts), to check that you have assembled all of the supporting information which Work and Income require, and to write a letter to Work and Income.

    If you have a Trust the law, policy, and practice in this area is complex. We can help you with the necessary advice, complete the parts of the forms concerning trusts, and advise you on the supporting documentation which is required.

Disclaimer: This article should not be relied upon for legal advice. Always seek professional legal advice before making any decisions regarding your business.