There is an upper limit to what a care home can charge for residential care – this is known as the ‘maximum contribution’. This article explains how the maximum contribution works.
In New Zealand, the cost of residential care varies. Different care homes charge different fees.
However, there is an upper limit to what any DHB-contracted care home can charge a resident – this is known as the maximum contribution and is set by the Ministry of Health.
The maximum contribution is currently between $1,000 and $1,200 per week. There are government subsidies available to cover the cost of rest home care, which are financially means tested.
Please note, the maximum contribution does not include optional extra services, for example a premium room (such as one with an ensuite) or personal services such as hairdressing.
The maximum contribution also only covers rest home care. If a resident requires a higher level of care, such as hospital or dementia level care, then the cost difference over and above what is covered by the maximum contribution will be paid for by the DHB.
A resident will need to complete a Needs Assessment to determine which level of care they require. A Needs Assessment may be completed more than once if there is a change in a resident’s circumstances.
Does the maximum contribution ever change?
The maximum contribution is adjusted annually on the 1st of July.
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