Care Managed vs Self-Managed Home Care Packages: differences and finding the right fit

In this article, we’ll walk you through the pros and cons of Care Managed and Self-Managed Home Care Packages (HCP), along with the types of personalities and family profiles best suited to each, to help you decide which option fits your family’s needs best.

In this article:

• Comparing Home care Package management options
• Ideal candidates for each aged care management option
• Sample care scenarios
• FAQs

What is a Care Managed Home Care Package plan?

In a Care Managed Home Care Package, your chosen provider assigns a care manager to oversee and coordinate your care services. They act as a point of contact for you and your family, ensure services are tailored to your needs, and can adjust the Package as needs change. They also ensure all care complies with national legislation.

What is a self-managed Home Care Package plan?

A self-managed Home Care Package lets clients take control of their care, allowing them (or their family) to select and manage services directly. Not all providers offer this option, so it’s important to confirm that your chosen provider supports self-management. This approach provides freedom but also the responsibility to manage care and budget effectively.

Comparing Home Care Package management options

Care Managed Home Care Packages

Pros:

• Expert support
  Care coordinators handle the administrative and operational aspects, ensuring that services are properly managed.
• Less stress
  You don’t have to worry about managing providers, funds and budgets, scheduling, or complying with regulations.
• Tailored care
  Coordinators ensure that services are personalised to your needs and preferences.
• Time-saving
  More time for clients to focus on their personal care and well-being, as the management is done by professionals.
• Professional oversight
  Ongoing, monitoring and reviewing care plans when there are changes in circumstances and health.

Cons:

• Less control
  Clients have less flexibility and autonomy over the selection of service providers and care decisions.
• Possible additional costs
  In the current Home Care Package scheme*, fees for management services can reduce the overall funds available for direct care.
  *Once Support at Home is implement (expected July 2025), package management will no longer apply and care management fee will be capped at 10%.
• Limited choice
  The provider may have partnerships with a set group of service providers, limiting your options.

Self-Managed Home Care Packages

Pros:

• Full control
  You have the freedom to choose your own care providers and manage your care plan.
• Flexibility
  Greater ability to tailor services exactly to your preferences, including scheduling and service types.
• Cost management
  You may be able to save on management fees by directly hiring workers, leaving more funds for direct care services.
• Increased independence
  Empowering clients to make decisions about their care can improve overall satisfaction.

Cons:

• Time-consuming
  Managing services, hiring staff, and keeping track of funding can be overwhelming. Your provider still holds your funds and ensures your spending is compliant with the package. You also need to coordinate with their provider to access funds and approve care workers.
• Responsibility for compliance
  You must ensure that the care meets all legal and quality standards, which can be complex.
• Requires organisational skills
  Effective self-management requires good financial and administrative skills. 
• Risk of gaps in care
  if your care needs change due to a shift in your health or circumstances, you are responsible for contacting your provider to review and change your plan. Completing this step while managing administrative tasks could be difficult while juggling the changes in your health.

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Ideal candidates for each aged care management option

Self-Managed Home Care Package is ideal for:

• Independent and proactive individuals
  Those who are comfortable managing their own care and making decisions about service providers.
• People with strong organisational skills
  Those who are confident managing administrative tasks like budgeting, hiring, and scheduling.
• Families who are hands-on
  Families who want more control over their loved one’s care and are willing to take on the responsibility of managing it.
• Tech-savvy individuals
  People who are comfortable using digital tools to manage services and keep track of funding.
• Clients with clear preferences
  Individuals who know exactly what services they want and who they want to provide them.
• Smaller care needs
  Those with simpler or fewer care needs that don’t require complex coordination or frequent adjustments.
• Cost-conscious individuals
  Those who want to maximise the amount of funding spent on direct care, avoiding management fees.

Care-Managed Home Care Package is ideal for:

• People who prefer ongoing support
  Those who benefit from regular guidance to ensure their care remains appropriate and effective.
• Older adults with complex care needs
  Individuals with medical conditions or multiple needs that require careful coordination and frequent adjustments.
• Families who prefer less involvement in management
  Families who want peace of mind knowing professionals are overseeing and managing the care.
• Clients who lack time or prefer support with administration
  Those who want to focus on their care while a provider manages the administrative tasks.
• People new to aged care
  Individuals who are unfamiliar with the aged care system and would benefit from guidance and support in navigating the process.
• Those who prefer to focus on their health and well-being
  Clients who don’t want the added stress of dealing with paperwork, budgeting, or finding service providers.
• Families with limited time or resources
  Those who may need support managing care due to work, health, or other commitments.

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Sample care scenarios

These fictional care scenarios were created to help illustrate the different experiences that individuals and families might have when choosing between Care Managed and Self-Managed Home Care Packages. Everyone’s care journey is unique, and the examples provided aim to offer a helpful perspective for those considering their home care options.

Scenario 1: Jonh's experience with self-managed home care

John, a retired carpenter, is a highly independent individual in his mid-70s. After a mild stroke, John decided to opt for a Self-Managed Home Care Package to maintain control over his care plan. He worked closely with his family to choose his care providers and manage the budget, including hiring a personal support worker for assistance with mobility and daily tasks. John also used digital tools to monitor his care hours and manage his schedule. His proactive approach allowed him to feel empowered and in control of his care, which improved his overall satisfaction and quality of life.

Scenario 2: Susan and her family’s care managed package

Susan, 82, lives with her daughter in a suburban area. Due to her increasing mobility issues and early-stage dementia, Susan’s daughter opted for a Care-Managed Home Care Package to ensure she received consistent, professional support. A care coordinator was assigned to oversee Susan’s care, which included assistance with daily activities, health monitoring, and medical appointments. The care manager also provided regular check-ins to adjust Susan's care as needed. With this approach, Susan’s daughter felt relieved knowing that a professional team was managing the complexities of Susan’s needs, allowing her to focus on spending quality time with her mother rather than administrative tasks.

Scenario 3: David’s self-managed approach to aged care

David, 68, a retired teacher with a keen interest in technology, chose a self-managed home care package to maintain his independence and flexibility. David needed assistance with household chores, meal preparation, and occasional transport to medical appointments. He used an app to track his care hours and manage a team of independent contractors, including a cleaner and a carer for his weekly outings. David appreciated the ability to tailor his care to his exact preferences, such as choosing a carer who shared his love for books and could assist him with light physical therapy exercises. His self-management approach helped him stay engaged and active in the decision-making process while still receiving the support he needed.

Scenario 4: Helen’s care managed package for peace of mind

Helen, 75, has a history of heart disease and arthritis, which made it increasingly difficult for her to manage daily tasks. After discussing options with her family, she opted for a care-managed home care package. The care manager took the lead in arranging services, including personal care, physiotherapy, and regular health assessments. Helen’s care manager also worked closely with her family to ensure that Helen’s medications and appointments were always up-to-date. This professional oversight provided Helen and her family with reassurance, knowing that all aspects of her care were being carefully managed, allowing them to focus on enjoying their time together without worrying about the details of her care.

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FAQs

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