Hodgson Pete: Social Security (Long-term Residential Care)  Amendment Bill — Third Reading 
Hodgson Pete: Social Security (Long-term Residential Care)  Amendment Bill — Third Reading 
[Volume:635;Page:6548] 
Hon PETE HODGSON (Minister of Health) 
: 
 I move  
That the Social Security (Long-term Residential Care) Amendment Bill be now read a third time 
. The principal purpose of the bill is to clarify the Government’s longstanding policy intent that a person assessed as needing long-term residential care shall pay no more than the maximum contribution for contracted care services. This legislative clarification of Government policy is required because varying interpretations of the current legislation have resulted in some older people being unfairly charged more than the maximum contribution to receive a basic package of care. 
The clarification of the maximum contribution policy in this bill means that all older people in a rest home or a continuing care hospital that has a contract with a district health board for Government funding will pay the same price in that region for the same basic package of services set out in the contract. The maximum contribution policy is not new and it reflects the Government’s commitment to fair treatment for all older New Zealanders requiring longer-term residential care. Nothing in this bill prevents an older person from agreeing to pay for extra services over and above that basic package of contracted care services. That freedom of choice remains. 
One of the changes to the Social Security Act 1964 included in this bill is a redefinition to ensure that overseas private pensions and annuities are treated the same as New Zealand private pensions and annuities when older people are being means assessed financially for eligibility for the residential care subsidy. This change addresses an inequity in the way that private overseas pensions have been treated in the income assessment for residential care. 
Another change is the clarification of eligibility for disability allowance for people in community residential care services and age-related care. This change recognises the difference in contracting arrangements for services provided to the two groups and ensures that predominantly younger people with disabilities in community residential care can receive the disability allowance on the same basis as others in the community. 
The Social Security (Long-term Residential Care) Amendment Bill also has a number of minor technical amendments that address anomalies identified during implementation of the earlier 2004 changes in income and asset testing. Those technical amendments include: firstly the insertion of a purpose and overview section in Part 4 of the Social Security Act to aid understanding of the long-term residential provisions; secondly the increase of the income from assets exemptions for couples with one partner in care so that they are not disadvantaged compared with single people or couples with both partners in care; and thirdly the provision that people who are exempt from asset testing such as people who are subject to compulsory treatment orders or who have been deinstitutionalised from long-stay psychopaedic or psychiatric hospitals are able to retain a weekly personal allowance. 
The bill resulting from the Committee stage also addresses issues around the backdating of eligibility for residential care subsidy the payment of disability allowance and two minor technical amendments. The extension of the backdating period for eligibility for a residential care subsidy from 28 days to 90 days is a fairer policy for what proved to be an impracticable period of time for people to apply for a residential care subsidy. 
People with disabilities in community residential services such as IDEA Services homes who apply for the disability allowance within 12 months of the 2006 Budget will now be able to receive payment from that date—18 May 2006—or from the date they became entitled to receive it whichever is later. This means that they will receive their full entitlements even if they take some time to apply. 
Two other minor technical amendments arising from the Committee stage are first a change to the date that repeal of the regulation making the 1 July 2006 consumer price index adjustment to the incomes from assets exemption will take effect and second the date that the bill will take effect has been altered to the day after the date of Royal assent. 
The changes made to the Social Security Act 1964 by the Social Security (Long-term Residential Care) Amendment Bill promote fairness for older people in New Zealand. These changes clarify Government policy so that it can be easily understood and fairly applied. I commend the bill to the House.