Financing Aged Care: Policy development from the base up

Summary: Home care services are highly valued by consumers and providers for their flexibility and ability to meet changing needs. Delays in application processing, complex systems navigation, and high costs limit access to home care services. Only a small percentage of older adults live in residential care, yet it accounts for a significant portion of aged care expenditure. Remodeling home care options to provide appropriate care earlier can prevent or delay entry into residential care. Financing aged care needs to be linked to health and wellbeing, with a focus on integrating care into individuals' changing health and wealth. Social insurance could stabilize funding and reduce late-life anxiety in aged care. Utilizing the equity in homes through low-interest loans can help fund home care services and prevent entry into residential care. Superannuation and annuities can be used to support longer lives and late-life care needs. Value of housing should not be locked up to prevent future social inequity.