Vulnerable Aussies charged more than $100 million by aged care provider, lawsuit alleges
Elderly and vulnerable Australians who are clients of a major aged care provider are being charged millions of dollars for services they don’t need, want, or use, a current class action alleges.
Jan Preuss, 85, moved into her Arcare home in August 2024, handing over a $500,000 deposit with an agreement to pay $40,000 a year for ongoing care.
Jan Preuss, with her daughter Brenda Lipsys by her bedside, is a resident at an ARCARE facility in Townsville. 60 Minutes
But buried on the last pages of the contract were a number of mandatory charges that would be added daily.
These included extra fees for Foxtel, exercise class, the ability to choose a meal, and private dining room access.
For Preuss, though, the most outrageous fee was $6.74 a day for a glass of wine or beer the teetotalling grandmother would never drink.
Preuss is not the only resident who has issues with Arcare.
Lesley Hollingsworth said her mother Dawn, who died aged 93 in late 2024 after complications from a stroke, had also been forced to pay for the “luxuries” that she was too unwell to enjoy.
“When we first realised it was like ripping up $30 a day, I rang them,” Hollingsworth said.
“And their response was, you’ve signed the contract, and they suggested that we get a contract lawyer.”
The federal government last year ordered aged care providers to scrap compulsory fees, to replace them with a voluntary charge for luxury services called the Higher Everyday Living Fee, or HELF.
Arcare is one of the largest aged care service providers in Australia. 60 Minutes
But providers decide what’s a luxury and what isn’t.
War veteran Keith, 92, an Arcare resident in Melbourne, opted to not pay the HELF fee, only to find he couldn’t attend a planned outing to the Living Legends champion horse complex, even after offering to pay.
92-year-old Keith was not allowed to swap his meal for a simple soup, because he did not opt to pay for Arcare's "luxury fee". 60 Minutes
“Grandad has always bet on his horses. He just loves his horses,” granddaughter Sarah Day said.
“It was the only thing out of all the activities they had on offer that he really wanted to do, and he just wasn’t allowed to.”
Not paying the HELF fee meant that the frail senior also was unable to choose his meal, even though he was having difficulties with digestion and was unable to eat enough.
Day said it took three months of lobbying for Arcare to acquiesce and give Keith the option of a bowl of soup.
Lawyer Damian Scattini has filed a class action against Arcare in the Federal Court alleging more than $100 million has been bled from elderly Australians.
He accused Arcare of treating their elderly clients like a profit centre.
“It’s not acceptable. And this cohort of all cohorts, the group is so vulnerable,” he said.
Arcare has been accused of charging its elderly residents a “luxury fee” that they do not need. 60 Minutes
Arcare provided a statement to 60 Minutes.
“Arcare is committed to providing high-quality care and services, including the option to access Higher Everyday Living services,” a spokesperson said.
“If we have fallen short of a resident’s expectations, we welcome the opportunity to engage with them to address any concerns.”
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