Now that we have had time to analyse the Government's plans for the funding of long term care, it is...
Now that we have had time to analyse the Government's plans for the funding of long term care, it is clear that most people will have to fund most of their care costs themselves. The reaction of both the media and the public to the official announcements has been low key, and even the charities and lobby groups have found it difficult to generate much publicity.
The main tack used by an amalgamation of charities and lobby groups is that the proposals to split the payment of nursing care and personal care are both unfair and unworkable.
One interpretation of part of the announcement made by Alan Milburn on the NHS National Plan is that, for example, if a nurse asks a care assistant to change a dressing, the nurse's time in making the request would be free, but the actual task of changing a dressing would be charged.
We are still awaiting details of exactly how the system will work. It is clear that it could turn out to either be very simple to operate or a complete nightmare for care homes, health authorities and patients.
The simplest system would be one in which a set amount of money is paid by the NHS for each person being cared for in a nursing home. Administration would be relatively simple and the person needing care would know exactly how much they would need to fund themselves each month.
The alternative scenario where the care home has to keep records for each individual resident of exactly how much 'qualifying' nursing care has been provided, and recover the appropriate payment from the NHS, will be a complicated exercise for all. The care home will need to keep individual records for each resident and the health authority will need to set up a new layer of bureaucracy to administer and check the payments. Each resident will not know exactly how much they need to pay from month to month, as it will depend on the level of 'qualifying' nursing care needed each month.
It will certainly make planning a much more complicated issue for all. Let us hope that the Government decides on the simple route.
The uncertainty introduced by the options available means that, for the foreseeable future, the most appropriate route for advisers to take when planning for care costs with their clients is to assume no payment for nursing costs from the NHS.
It will always be possible to reduce the level of benefit being funded via a long term care insurance policy once we know exactly what the rules will be. This means that any policyholder who ends up needing to claim in the meantime will be fully covered.
This may mean more work for the providers and does need a commitment from them to make policy changes at no extra cost and give refunds where applicable. It would be unreasonable for them to take any other approach than this in the circumstances.
Let us hope for more clarity as soon as possible.
