From 1 September 2021, all Home Care Package care providers became subject to changes from the Commonwealth Government's Improved Payment Arrangements (IPA) reform (Phase 2). This reform changes how providers receive funding from the Commonwealth for your care and how that information needs to be reported to you.

Five Good Friends is updating our care app and statements to meet these new requirements and provide you with clear oversight of your funds, including how they are being spent.

The changes to how your accounts, transactions and statements appear are being made to comply with the Commonwealth Government's Improved Payment Arrangements (IPA) reform. From 1 September 2021, the Government changed the way all providers of Home Care Packages are paid. Part of the intent of these changes is to provide care recipients with a clearer picture of your home care package and unspent funds.

Providers are now only paid for the care, services and goods they actually delivered to you. This means that the maximum amount of your package will go towards supporting you to remain in your own home for as long as possible or will be held for you by Government until you need it. These changes implement a key recommendation of the Royal Commission into Aged Care Quality and Safety.

For more information see these publications from the Department of Health:

The "summary of care and services delivered for the statement period" section shows both the total cost of care delivered and a summary of the payments for the statement period. Depending on your situation, payments can take several forms.

This section may include:

The "summary of the account balances" section shows an overview of any unspent funds and where those funds are held.

This section may include the balance of the following accounts:

The "care and services" section lists all the transactions related to care and services delivered during the claim period.

This section provides a detailed list of all transactions related to any unspent funds held by Services Australia on your behalf.

What is the Home Care Account?

Services Australia manages a Home Care Account on your behalf. Any unspent funds from your Home Care Package entitlement accrued from 1 September 2021 on are held by the Government in this account for you until you need them.

This section provides a detailed list of all transactions related to any Commonwealth portion of unspent funds held by Five Good Friends.

What is the Provider held Commonwealth Unspent Funds Account?

Any unspent funds from your Home Care Package entitlement accrued before 1 September 2021 are held by Five Good Friends for you until you need them. These are the unspent Commonwealth funds held by your provider (Five Good Friends) on your behalf.

This section provides a detailed list of all transactions paid or payable related to the Income Tested Fee account.

What is the Income Tested Fee Account?

If you have been assessed a mandated contribution in the form of an Income Tested fee, you will have an Income Tested Fee account managed on your behalf by Five Good Friends.

Any accrued unspent funds collected from Income Tested Fees are held by Five Good Friends for you until you need them. If a change is made to your assessed Income Tested Fee and results in an adjustment to your Income Tested Fee balance, the adjustment will be shown here.

This section provides a detailed list of all transactions paid or payable related to client contributions.

What is the Client Contributions Account?

Five Good Friends manages an account on your behalf related to client contributions. Client contributions can include an amount you have agreed to pay above your Home Care Package entitlement, for example.

Any accrued unspent funds collected as Client Contributions are held by Five Good Friends for you until you need them. If the total of care and services delivered in the billing period was greater than the funds available, a negative adjustment will be shown here.

Q: Why are the dates of the transactions different to the date a visit or service happened?

A: Transactions for visits and services are batched and collected weekly by the finance system and therefore the date that appears on the statement is the date of the billing run as opposed to the date the visit or service was delivered.

Q: Why are some unspent funds held by the Government and some held by the Provider?

A: The Government has changed how your provider is paid your Home Care Package subsidy and any supplements under the IPA reform. Providers now are paid only for the care, services and goods they actually delivered to you. That means that the amount your provider is paid may be different than your total available home care package subsidy and supplements.

However, you are still entitled to the full amount of your package. Any amount that was not spent in a given month will be held for you by Government in your Home Care Account until you need it.

Q: My statement says I have a negative balance in my Client Contribution Account. What does this mean?

A: A negative balance in the Client Contribution Account is most likely due to a situation where the total of care and services delivered in the billing period was greater than total of all funds available. Your Care Manager will be in touch about managing your Home Care Package budget.

Q: My statement says I have a negative balance in my Income Tested Fee Account. What does this mean?

A: A negative balance in the Income Tested Fee Account is most likely due to a change in the Income Tested Fee you have been assessed to pay. If you owe any money relating to a backdated change to your assessed Income Tested Fee, this will be included on your next invoice.

Q: Why is the amount the Government paid less than my full Home Care Package subsidy and supplements amount?

A: The Government has changed how your provider is paid your Home Care Package subsidy and any supplements under the IPA reform. Providers now are paid only for the care, services and goods they actually delivered to you. That means that the amount your provider is paid may be different than your total available home care package subsidy and supplements. Funds that are not used by your care provider accrue and are held by the government.

Care and services — All care, services and goods delivered during the billing period.

Client Contributions Account— Five Good Friends manages an account on your behalf related to client contributions. Client contributions can include an amount you have agreed to pay above your Home Care Package entitlement, for example.

Any accrued unspent funds collected as Client Contributions are held by Five Good Friends for you until you need them. If the total of care and services delivered in the billing period was greater than the funds available, a negative adjustment will be shown here.

Government Subsidy and Supplements — The total of your Home Care Package entitlement for the period, consisting of your Home Care Package subsidy and any supplements you recieved.

Home Care Account — Services Australia manages a Home Care Account on your behalf. Any unspent funds from your Home Care Package entitlement accrued from 1 September 2021 on are held by the Government in this account for you until you need them.

Income Tested Fee — A Government assessed and mandated contribution that may be required as determined through an income assessment. This fee is based on your individual income, including your pension. You can read more at https://www.myagedcare.gov.au/home-care-package-costs-and-fees#income-tested-fee

Income Tested Fee Account — If you have been assessed a mandated contribution in the form of an Income Tested fee, you will have an Income Tested Fee account managed on your behalf by Five Good Friends.

Any accrued unspent funds collected from Income Tested Fees are held by Five Good Friends for you until you need them. If a change is made to your assessed Income Tested Fee and results in an adjustment to your Income Tested Fee balance, the adjustment will be shown here.

Net cost — the total cost of the care and services delivered during the billing period. This includes all care, services and goods.

Provider-held Commonwealth Unspent Funds Account — Any unspent funds from your Home Care Package entitlement accrued before 1 September 2021 are held by Five Good Friends for you until you need them in this account. These are the unspent Commonwealth funds held by your provider (Five Good Friends) on your behalf.

The Five Good Friends team are happy to answer any questions you have about these changes. If you have any questions, don't hesitate to get in touch with our Finance team at: [email protected]