5 Critical Things You Need to Know About Exit Fees

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1.   Not all Providers charge an Exit Fee

A lot of Providers will require you to pay an Exit Fee if you leave them. Contrary to what some will tell you, this is not a Government requirement.

The amount is intended to allow Providers to recover administrative costs. Some people also see it as a way of manipulating you into staying with the Provider.

When you are choosing a Provider make sure to ask whether you will be charged an Exit Fee.

2.  The amount will be taken from your unspent funds

The exit fee will be taken by the Provider from the funds you have left in your Package. If you have no funds left over they cannot charge you a fee.

There are cases where a client is told by their Provider that they must have a certain amount of funding accrued just in case they decide to leave.

This is not true. Your funding is for YOU. If you are with a Provider who is doing this, find one who won’t.

3.  The Provider must publish their maximum fee on My Aged Care

Your Provider is required to update their maximum exit amount through the My Aged Care Portal.

If their fee is not listed, they cannot charge you.

When picking a Provider make sure to check on the My Aged Care portal if their exit fee is recorded.

4.  It must be disclosed in your Home Care Agreement

The amount must be mutually agreed with the Provider and Client and included in your agreement.

This ensures that you are aware of the maximum exit amount that may be deducted if they decide to change providers or leave home care.

If it’s not in your agreement, they can’t technically charge it.

5.  There is no cap on the exit amount, but it cannot exceed:

  • The published exit amount at the time the Home Care Agreement was entered into
  • Home Care Agreement exit amount
  • Your unspent home care funds amount

For example:

 

 

Client A Client B Client C
Published maximum amount on My Aged Care $500 $500 $500
Negotiated exit amount in a client’s Home Care Agreement $250 $250 $250
Unspent home care amount $150 $500 $0
Exit amount that can be deducted $150 $250 $0

 

At Let’s Get Care we don’t charge our client’s an exit fee. If you are looking for a Provider, make sure to ask if they do.

If you are Switching to another Provider, ask for a statement of your unspent funds, and question the exit fee they will charge you.

Remember, the funding is YOURS, and try and choose a Provider who understands that.

 

 

 

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