The Federal Government will fund selected community aged care providers to deliver innovative service models, which provide care recipients and their carers with greater control over the design and delivery of the care and services they receive. From July 1 2015 all home care packages convert to CDC. “The purpose of CDC Consumer (or self) directed care allows people to have greater control over their own lives by allowing them, to the extent that they are capable and wish so to do, to make choices about the types of care services they access and the delivery of those services.”
The principal behind CDC is driven by the governments attempt to keep people at home as long as possible as this a much cheaper alternative than institutional care.
However, CDC needs to be explored by the consumer and they should not accept the first offer of a package from a provider. The Consumer needs to shop around as different CDC package providers charge different fees.
The Government funding is well thought out however under a CDC, a service provider is entitled to charge an administrative fee and a Core Advisory and Care Management Fee. It is here that the anomaly becomes quite apparent as there are no caps on what providers may charge. After surveying Approved CDC Providers it has been found that some are charging 25% of the total of the care recipient’s funding in administration whilst for the same services other providers are charging 51.5%, taking over half the budget intended for care. It is possible to negotiate the fees and charges especially if the consumer or a family member is willing to take on some of the care coordination roles. This frees up more of the funding for actual care
Meanwhile until there is change the lesson is that when looking around for a CDC ask each organisation for the fees and charges up front. If you are already on a CDC and you find the administrative charges are expensive look around for a cheaper alternative. Do not relinquish your existing package until another is available. This may take some time so leave your name on waiting lists.
