[Date]
[Resident/PoA address details]
Dear [Resident’s name]
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 2013 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.
[Dear ARC provider, please delete any of the following that do not apply to the location of your facility.)
As of 1 July 2013 the maximum contribution applicable to you for the Christchurch City region changed to $848.75 per week.
As of 1 July 2013 the maximum contribution applicable to you for the Waimakariri region changed to $842.52 per week.
As of 1 July 2013 the maximum contribution applicable to you for the Selwyn region changed to $842.52 per week.
As of 1 July 2013 the maximum contribution applicable to you for the Ashburton region changed to $830.62 per week.
As of 1 July 2013 the maximum contribution applicable to you for the Banks Peninsula region changed to $848.75 per week.
As of 1 July 2013 the maximum contribution applicable to you for the Kaikoura region changed to $842.52 per week.
As of 1 July 2013 the maximum contribution applicable to you for the Hurunui region changed to $827.12 per week.
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 2013 are as follows:
Asset LevelA single or widowed person in care / $215,132
Couples with both partners in care / $215,132
Couples with one partner in care / Either $117,811 (the family home, car, and a pre-paid funeral of up to $10,000 are exempt assets)
Or
$215,132 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 0800 999 727.
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 the Older Persons Health Single Point of Entry at 03 337 7765.
Yours sincerely
[ Provider name etc ]
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