Government to set up Ministerial Advisory Group to review aged care sector funding

Associate Health Minister Casey Costello. Photo / Mark Mitchell

Minister of Health Simeon Brown and Associate Minister of Health Casey Costello today announced a Ministerial Advisory Group will recommend changes to the aged care funding model.

“We know that NZ has very good aged care, provided by dedicated people,” Costello said.

“However, the way that these services are funded is outdated and does not recognise the connection between the various parts of the system or the future investment required.

“Essentially, our aged care model is out of date and piecemeal change isn’t the solution.”

Costello said the Government wants a system that provides the right type of care in the right place.

“That allows people to transition between these types of care, that’s easier to navigate and access, that’s fair, and that is sustainable and will endure as our population ages.”

Brown said ensuring there are enough aged care beds is critical so all New Zealanders are cared for.

“The Government is committed to a bipartisan approach to addressing these challenges as part of the commitment in the National-NZ First Coalition Agreement,” he said.

The group is tasked with identifying changes necessary to build the aged care system NZ needs and will provide an independent report and recommendations around three areas:

The funding model needed to support sustainable services, particularly a sustainable supply of aged care beds;How the costs of providing aged care could be reasonably shared between those receiving care and the Government;The changes needed to support cohesion and integration between aged care services and health services, and between aged care and disability support services.

The group is expected to begin before January 31 next year and report back by mid-2026, with changes to the funding model able to be implemented in 2027.

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