How much does living in a residential care home cost?

It is useful to understand that there are essentially two parts to the payment. The first is the ‘care’ component which does not vary in cost or quality, and the second is the ‘accommodation’, which is the variable part of the payment.

If you have been assessed and are eligible for care, then there is a maximum amount you must pay, known as the Maximum Contribution (MC). This covers the cost of care and standard accommodation. The amount varies from region to region, reflecting the cost of living in that region. (For more about how you can pay see further down this article.)

Many care homes now offer premium accommodation which comes at an extra cost. (The price range is wide.) Premium accommodation fees are charged on a daily basis so calculate the weekly and annual amounts to get a better indication of the cost over time.

For homeowners or those who have assets (such as savings of an equivalent amount) there is another residential care option knowns as Care Apartments/Suites. This option is displayed on a separate table.

This table showing residential care home charges gives examples of standard and premium accommodation costs. Pricing is variable and indicative only.

Top up – This additional amount is paid by health authorities to providers to cover the full cost of care for those requiring higher or more complex care i.e., hospital or dementia level of care.  The resident is not involved in this transaction and no payment is required from them. We mention this as it demonstrates that the real cost of care is often greater than the public realise. It also makes the cost of high levels of care at home more understandable.

Some things to take note of:

• You are responsible to pay for your care and accommodation whether by private payment, a contribution from your National Super or other approved payment.
• If you cannot pay the full amount from your own means and if you meet specific criteria, you may be eligible for a Residential Care Subsidy (RCS).
• Non-assessed or non-qualifying persons e.g., non-New Zealand residents, need to negotiate the cost of care with the provider and pay privately. Legal advice should be obtained.
• A premium fee can only be charged for services of a fixed nature related to the accommodation (e.g., ensuite, tea coffee making area) and which are not required under the Age Related Residential Care Agreement (ARRC) between health funders and care providers. There are rules governing this arrangement. These rules also cover things such as, what happens if you change your mind, or if the only rooms available have a premium charge and you can’t afford it.