Social Security (Long-term Residential Care) Amendment Act 2006

1: Title
This Act is the Social Security (Long-term Residential Care) Amendment Act 2006.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act amended
This Act amends the Social Security Act 1964
1: Amendments to principal Act
1: Amendments to Part 1
4: Disability allowance
1: Section 69C subsection (2B)
2B: A disability allowance is not payable under this section in respect of—
a: expenses arising from the disability of a person who is a resident assessed as requiring care (as defined in section 136 section 141 or section 142
b: expenses arising from the disability of a person that are costs of residential care services supplied to the person if—
i: the person has a psychiatric, intellectual, physical, or sensory disability; and
ii: the person's accommodation costs (as defined in section 61E New Zealand Public Health and Disability Act 2000
2C: For the avoidance of doubt, nothing in paragraph (b) of subsection (2B)
2: Any money received by a person by way of a disability allowance must be repaid as a debt due to the Crown if the disability allowance was granted in respect of an application that—
a: was made after 14 June 2006; and
b: was made in respect of expenses referred to in section 69C(2B)﻿(a) of the principal Act (as inserted by this section).
3: If, on an application made between 18 May 2006 and 18 May 2007, a disability allowance is granted to or on account of a person referred to in section 69C(2B)﻿(b) of the principal Act (as inserted by this section) for expenses that are not costs of residential care services supplied to that person, then, despite section 80(1)
a: the date the person became entitled to receive it; or
b: 18 May 2006.
2: Amendments to Part 4
5: New sections 136AA and 136AB inserted
The following sections are inserted immediately before section 136
136AA: Purpose of this Part
The purpose of this Part is to—
a: specify the circumstances in which certain older persons are required to pay for their own long-term residential care; and
b: specify the circumstances in which a funder must contribute toward the cost of those persons' long-term residential care; and
c: provide for those persons to apply for a means assessment to determine if, and how much, a funder must contribute toward the cost of their long-term residential care; and
d: provide that those persons are not required to pay more than the maximum contribution (which amount is specified by Gazette
136AB: Overview of this Part
1: This Part sets out the regime for determining liability in respect of the cost of providing long-term residential care to an eligible person who—
a: has been needs assessed as requiring long-term residential care in a hospital or rest home indefinitely; and
b: receives that care in a hospital or rest home that is a hospital or rest home funded under the New Zealand Public Health and Disability Act 2000
2: This Part provides—
a: for the needs assessment of an eligible person to determine whether the person requires long-term residential care in a hospital or rest home indefinitely; and
b: for the means assessment of an eligible person who has been needs assessed as requiring long-term residential care in a hospital or rest home indefinitely to determine the amount that the person is liable to pay for the cost of his or her care; and
c: for a maximum contribution, which is the most that an eligible person who has been needs assessed as requiring long-term residential care indefinitely may be required to pay for the cost of his or her assessed care needs provided in a hospital or rest home that has a contract with a funder to provide long-term residential care to eligible persons; and
d: for determination of the extent to which a funder is liable to pay the cost of the long-term residential care provided to an eligible person who has been needs assessed as requiring long-term residential care indefinitely.
3: This section is by way of explanation only. If a provision of this or any other Act is inconsistent with this section, the other provision prevails.
6: Interpretation
1: Section 136 contracted care services cost of contracted care services contracted care services
a: provided by a contracted care provider; and
b: provided to an eligible person who has been needs assessed as requiring long-term residential care in a hospital or rest home indefinitely; and
c: in relation to a particular person, the services necessary to meet the person's assessed long-term residential care needs cost of contracted care services
a: is the cost of the contracted care services provided by a contracted care provider to meet the resident's assessed long-term residential care needs; and
b: is specified in the service agreement or section 88
2: Section 136 contracted care provider
a: has a service agreement; or
b: accepts payment under a section 88 personal allowance section 155 section 88 notice section 88 of the New Zealand Public Health and Disability Act 2000 service agreement section 25 of the New Zealand Public Health and Disability Act 2000
3: Paragraph (b) resident assessed as requiring care section 136 irrespective of whether a funder has any liability to pay for any of the cost of his or her care
7: Effect of being assessed as requiring long-term residential care in hospital or rest home indefinitely
Section 138(1) paragraphs (a) (b)
a: receives contracted care services if he or she is receiving long-term residential care from a contracted care provider, irrespective of whether a funder has any liability to pay for any of the cost of his or her care; and
b: is, or becomes, a resident assessed as requiring care as soon as he or she receives contracted care services and sections 139 to 142
c: is entitled, under section 144 Schedule 27
8: Personal obligation to pay for care
Section 139 subsection (1)
1: The following people are liable to pay the cost of long-term residential care provided to them in a hospital or rest home:
a: a resident assessed as requiring care; and
b: any other eligible person receiving long-term residential care from a provider.
9: Funder's liability in respect of persons whose assets are equal to or below applicable asset threshold
Section 141(4) 28 90
10: Funder's liability in respect of exempt persons and elderly victims of crime
Section 142 subsection (1)
1: In the case of an exempt person, the funder must pay the amount determined in accordance with the following formula: p = c − (b − a) where
p: is the amount the funder must pay
c: is the cost of contracted care services provided to the exempt person
b: is the amount of any benefit received by the exempt person
a: is the personal allowance.
1A: By way of explanation, the effect of subsection (1)
11: Residents assessed as requiring care aged 50 to 64 not required to pay out of assets
Section 143(2) section 141 Part 4
12: Date of means assessment
Section 145
f: in the case of a review under section 150(2A)
i: conducted by the chief executive in the event of a general adjustment of rates of benefits or allowances, the date of that general adjustment; or
ii: conducted as a result of advice received by the Department under section 149(1)
iii: conducted by the chief executive in any other case, the date on which the chief executive initiated the review.
13: Means assessment as to income
Section 147(4) 28 90
14: New section 147A inserted
The following section is inserted after section 147
147A: Deprivation of assets and income
1: If the chief executive is satisfied that a person who has applied for a means assessment, or the spouse or partner of that person, has directly or indirectly deprived himself or herself of any income or property (other than an exempt asset), the chief executive may in his or her discretion conduct the means assessment as if the deprivation had not occurred.
2: If the chief executive is satisfied that a person who has been means assessed, or the spouse or partner of that person, has directly or indirectly deprived himself or herself of any income or property (other than an exempt asset), the chief executive may in his or her discretion include that income or property in a review of the person's means assessment under section 150
15: Obligation to advise change of circumstances and right to apply for review
Section 149 subsection (1)
1A: However, subsection (1)
a: a funder has no liability under section 140 or section 142
b: the person who has been means assessed has been found to have assets equal to or less than the applicable asset threshold and the change relates to the value of that person's assets, or to the value of the assets of that person's spouse or partner.
16: Review of means assessment
1: Section 150 subsection (2)
2A: In the case only of a person who has been means assessed and been found to have assets equal to or less than the applicable asset threshold, the chief executive—
a: may review the person's means assessment annually; and
b: may, if the chief executive considers that the person's annual income has changed or is about to change, review the person's means assessment at any time.
2: Section 150(3) or subsection (2A) subsection (2)
3: Section 150 subsection (4)
4: A review must review the person's means assessment as to assets and, if necessary, the person's means assessment as to income unless subsection (4A)
4A: A review must review the person's means assessment as to income only (and not the person's means assessment as to assets) if the review is conducted under—
a: subsection (1)﻿(a)
b: subsection (2A)
4B: A review under this section is conducted as at the date of means assessment.
17: Maximum contribution set by
Gazette Section 152 subsection (2)
2: By way of explanation, the amount of the maximum contribution set for a region is the amount agreed at a national level between funder representatives and provider representatives as being the amount that funders in that region are to pay to providers in that region for providing rest-home-level care services.
18: Regulations relating to this Part
1: Section 155(1)﻿(e) means assessment section 147A
2: Section 155(1)﻿(k) , as defined in Part 3 of Schedule 27
3: Section 155(2) 2006 2007
3: Other amendments
19: Amendment to Schedule 27
1: Clause 5 income-from-assets exemption income-from-assets exemption section 155
a: $805, if the person is single; or
b: $1,610, if the person's spouse or partner is a resident assessed as requiring care; or
c: $2,415 if the person's spouse or partner is not a resident assessed as requiring care
2: Regulation 5 Social Security (Long-term Residential Care) Amendment Regulations 2006
20: Further amendments to Schedule 27
Schedule 27
2: Consequential amendment
21: Amendment to Social Security (Long-term Residential Care) Regulations 2005
Regulation 9B Social Security (Long-term Residential Care) Regulations 2005 paragraph (a) For the purposes of section 147A of the Act