The Government will overhaul aged care funding, with a new Ministerial Advisory Group to recommend fixes by mid-2026, a move that could affect services used by many Hibiscus Coast families.

Associate Health Minister Casey Costello and Health Minister Simeon Brown say the goal is better outcomes for the 900,000 New Zealanders over 65 and a fair, sustainable system.

“Essentially, our aged care model is out of date and piecemeal change isn’t the solution,” Ms Costello says.

“We want a system that provides the right type of care in the right place… that’s fair, and that is sustainable and will endure as our population ages.”

The independent Group will report on three areas: a funding model that keeps services sustainable, including a reliable supply of standard aged care beds; how costs should be shared between people receiving care and the Government; and how to better connect aged care with health and disability support services.

Mr Brown says the task is to identify the changes needed to build the system New Zealand requires.

“Ensuring a sustainable supply of standard aged care beds is critical to ensuring all New Zealanders have the care they need as they age,” he says.

The Government expects recommendations by mid-2026 and changes to the funding model from 2027.

Ministers also stress a bipartisan approach, with this work continuing reviews started under the previous government and supported by a select committee inquiry.

While long-term reform is developed, the Government says it has boosted sector funding by $270m over the past two years to relieve pressure and improve services.

For the Hibiscus Coast, the focus on bed supply, clearer navigation, and support to stay at home if possible are likely to shape how local families access and move between levels of care.

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