Residential Care Subsidy
Most New Zealanders know how quickly the cost of daily living can add up. It is natural to worry about how long-term residential care in a hospital or rest home might be covered if you or a loved one ever need it. For people who cannot afford these costs on their own, the Residential Care Subsidy from Te Whatu Ora Health New Zealand can help. This subsidy is paid directly to the hospital or rest home to reduce the financial burden.
Who is eligible?
You will need to meet one of the following criteria:
• You are 65 or older, or aged 50 to 64 and single with no dependent children.
• You have been assessed as needing long-term residential care in a hospital or rest home.
• You require care for an indefinite period.
• You are receiving contracted care services.
Your eligibility may also depend on the assets and income you and your partner have.
What about asset limits?
If you are 50 to 64 and single with no dependent children, you automatically meet the asset test.
If you are 65 or older, your total combined assets with your partner (if you have one) must be $273,628 or less. If your partner is not in long-term residential care, you can choose between two options:
• Assets of $149,845 or less, excluding the value of your house and car. Your home is not counted if your partner or dependent child lives there.
• Assets of $273,628 or less, including the value of your house and car.
So, what happens next?
Te Whatu Ora will check that your income is within the required limits. Each type of income is assessed differently. If you do not qualify, you will need to contact Te Whatu Ora for support. For questions, you can reach the Residential Subsidy Unit by:
• Calling 0800 999 727
• Emailing msd_rcs@msd.govt.nz
• Visiting their webpage: www.workandincome.govt.nz/products/a-z-benefits/residential-care-subsidy.html
