IN BRIEF
- Aged care provider Opal Healthcare has been forced to refund and credit almost $200,000 to its residents.
- The government has introduced reforms to curb aged care providers' misuse of the Higher Everyday Living Fee.
One of Australia's largest aged care providers has been forced to refund almost $200,000 to residents after regulatory action from the Aged Care Quality and Safety Commission.
The provider, which SBS News can reveal is Opal Healthcare, refunded and credited almost 350 aged care residents following the commission's review of its Higher Everyday Living Fee (HELF) arrangements.
HELF was introduced by the Australian government in November. It is an optional fee Australians in residential aged care can pay for a higher standard of everyday lifestyle and food and beverage service.
SBS understands that the commission has found examples from a number of providers in addition to Opal for products that take advantage of the scheme.
These services, which have been reported by Australian media and have not been tied to Opal, include bundling services of Foxtel, newspapers, and wifi in a package for a resident who couldn't read, and charging residents to attend a volunteer choir that was coming to the aged care residential home.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
The commission's review also forced Opal Healthcare to reform charging practices and agreements and restore or provide services it had been charging residents for, at no additional fee.
"Our regulatory and complaints work is focused on protecting residents, ensuring the standard service offer meets the requirements of residents and ensuring providers meet their obligations," commissioner Liz Hefren-Webb said.
She said providers must take "proactive steps" to ensure those impacted "receive appropriate remediation".
Opal Healthcare manages 148 residential aged care facilities across Australia, which are home to more than 13,000 residents.
A spokesperson for the aged provider said that following Opal Healthcare's introduction of the HELF program in February, there were changes to the program guidelines.
"As a result, we identified that charges to approximately 2 per cent of residents required reversal to comply with the updated guidelines. We voluntarily reversed the relevant fees for all affected residents," the spokesperson told SBS News in a statement.
The spokesperson said the service "notified the regulator" in March and "ensured the correct billing" of all residents.
In a statement to SBS News, Hefren-Webb said her office has "seen examples" of providers requiring residents to pay for services that "should already be included as part of standard residential aged care, charging for services residents cannot or do not use, or presenting optional fees as though they are mandatory".
"We expect all providers to ensure fees are charged in accordance with the rules and their obligations, and that residents understand what they are paying for," she said.
"While we won't speculate on whether further refunds may occur elsewhere, the Commission will continue to scrutinise providers' practices and take action where necessary to protect older people."
Hefren-Webb said providers with a "willingness to cooperate and undertake early remediation" would be considered when deciding disciplinary action, but this would "not prevent regulatory action where the circumstances warrant it".
“Providers that identify a problem should act immediately to prevent any further impact on residents, notify the Commission, and commence remediation without delay."
The commission's action comes as the government implement aged care reforms that would stop providers from charging residents HELF for services they'd previously received for free before November 2025.
"We've always said it was unreasonable for providers to start charging older Australians for services they previously received at no cost," Aged Care Minister Sam Rae said in a statement on Thursday.
"We've listened to older people and we are acting now to make the rules clear and strengthen protections for older Australians."
He said the government has made it "very clear" that HELF is not for services that are part of "everyday care".
"It's common sense that services a provider was already delivering continue to be provided at no additional cost."
The reform follows the package of consumer protections delivered by the government earlier this year, including the commission's power to order refunds from services that are not fulfilling their obligations.
For the latest from SBS News, download our app and subscribe to our newsletter.
