- Hon Simeon Brown
The Government has agreed to an integrated approach to reform the aged care system including the establishment of a Ministerial Advisory Group to recommend changes to the funding model, Associate Health Minister Casey Costello and Health Minister Simeon Brown announced today.
"Improving the lives of older people is a priority for the coalition Government," Ms Costello says. "Today's announcement is about two things - better health outcomes for the 900,000 of us who are over 65, and a better, fit-for-purpose aged care system.
"We know that New Zealand has very good aged care, provided by dedicated people. However, the way that these services are funded is outdated and does not recognise the connection between the various parts of the system or the future investment required.
"Essentially, our aged care model is out of date and piecemeal change isn't the solution.
"We want a system that provides the right type of care in the right place - and 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.
"That requires long-term thinking and a bipartisan approach to solutions. This Government continued the review of aged care funding and service models started by the previous government and supported the establishment of a select committee inquiry into aged care."
Mr Brown said that there was widespread understanding of the issues within the current system. The Ministerial Advisory Group was now being tasked with identifying the changes necessary to build the aged care system New Zealand needs.
The expert Group will provide an independent report and a set of 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.
"Ensuring a sustainable supply of standard aged care beds is critical to ensuring all New Zealanders have the care they need as they age," Health Minister Simeon Brown says.
"The Government expects recommendations from this advisory group by mid-2026, with changes to the funding model able to be implemented in 2027.
"The Government is committed to a bipartisan approach to addressing these challenges as part of the commitment in the National-NZ First Coalition Agreement."
"These are significant policy issues, with major political considerations attached and that's why an independent group is required," Ms Costello says. "The goal is that the Group's recommendations will inform any future Governments policy and funding decisions.
"Encouragingly, there is great practice and innovation in different parts of the aged care system and standardising current good practice would be a significant step forward.
"We also need a system response that recognises most people want to stay at home if they can and allows them to access and move between the different levels of care they might need."
The Ministers said that the Government was investing to ensure the on-going sustainability of the sector and continuing to drive operational improvements while the longer-term work was undertaken, with total funding to the sector increased by $270 million in the last two years.
"The funding increases are aimed at relieving pressure on the sector and improving care services for older New Zealanders while we work towards the longer-term reform needed to better help people age well."
