INCOME AND ASSET TESTING CHANGES

Health Minister Bill English confirmed today that income and asset testing for older people in long-stay residential care in public hospitals, and asset testing for older people in long-stay residential care in private hospitals, will be removed from 1 October this year.

Both changes were signalled in the Coalition Agreement. "More than 6,000 older people in long-term hospital care will be affected by this change," said Mr English.

The Budget includes a top-up of $14.1 million in the 1998/99 year to implement the policy, in addition to the $33.75 million budgeted last year, and a total of $62.6 million in each of the next two years.

Legislation to enact these changes was introduced into Parliament in early May to come into effect by 1 October 1998.