The recent submissions to parliament’s Health Select Committee makes one thing clear: a crisis looms for the aged care sector in New Zealand. This crisis centres on the funding and staffing of residential aged care (ARC) and in-home care and support services. But to address the problem, the government doesn’t have to look far.
Australia has changed how the sector is funded, calling on wealthier members of society to pay a fairer share of the costs. New Zealanders in aged care Last year, an estimated 32,000 people were in residential aged care. A means-tested government-funded residential care subsidy pays for most of the cost of care for those who qualify – around 63% of ARC residents.
The eligibility threshold for the ARC subsidy is total assets of NZ$284,636 or less for a couple aged 65 or older. New Zealand superannuation, the universal age pension, pays the remainder and provides a modest weekly spending allowance. Those whose assets exceed the threshold pay for their own care, increasingly in “care suites”.
These beds, only available to those who can afford the cost, reduce what is available for subsidised residents, raising equity issues. In 2022/23 Health NZ contributed $1.352 billion to ARC providers.
Residents’ fees contributed a further $1.1 billion. During the same period, around 80,000 people aged over 65 years, with a community services card or suffering from a long term condition, accessed home support services (at a cost of $2 billion).
These servic.