No, rest homes and residential care facilities are not free for older people. Paying for, or contributing towards, rest home care and other residential care services is your responsibility, much like any other living arrangement.
Eldernet lists providers who meet certain requirements and have a Maximum Contribution (MC) limit. This limit is the equivalent of the cost for a standard room and care, based on the Rest Home Care contract price paid to providers by Health New Zealand | Te Whatu Ora.
There are three accommodation options available, and the care provided is standardised across all options. The first is a standard room, the second is a premium room with additional features, which incurs extra costs. The third is a care suite that requires you to ‘purchase’ the room through an Occupation Right Agreement (like a retirement village ‘purchase’).
However, many people may not be able to afford the full cost of their care or may exhaust their personal funds, in which case they can consider applying for a Residential Care Subsidy or a loan.
Note: Details may change, individual circumstances vary widely, and some situations can be complex. Please therefore ensure that you get the appropriate advice from Work and Income. You can phone the Residential Care Subsidy Unit freephone 0800 999 727. In some situations, such as the purchase of a Care Apartment you must consult your lawyer.
Updated: 3 Apr 2024