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Governments worldwide are reshaping long-term care (LTC) systems to address ageing populations, workforce shortages and rising costs.
Recent policy updates across Asia, North America, Australia and Europe highlight a shift toward home-based care, medical integration and technology-enabled services, while exposing ongoing challenges in funding, access and accountability.
South Korea: 2027 reforms expand home care
South Korea’s 2027 LTC reforms will expand integrated home-care providers to 700 and home medical care centres to 500. Monthly benefits for severely dependent older people will increase by up to KRW 378,500, while Grade 1 recipients may receive up to 48 three-hour home-care visits monthly.
The reforms strengthen medical and personal care integration, supporting older people to remain in their communities.
Source: South Korea government policy announcement
United States: Medicare increases nursing-home payments
CMS finalized a 2.4% Medicare payment increase for skilled nursing facilities in FY2027, effective October 1, 2026. The adjustment is expected to add approximately US$882.7 million in aggregate payments.
The increase provides some financial relief, but nursing homes continue to face pressure from labour costs, staffing needs and quality requirements.
Source: CMS.gov
Japan: Connected assistive devices get clearer coverage rules
Japan will clarify LTC insurance eligibility for connected assistive devices from February 2027. Certain wheelchairs, electric wheelchair accessories, special beds and dementia wandering-detection devices may qualify when communication functions support maintenance or usage monitoring.
However, devices transmitting health deterioration or condition changes remain excluded, while communication and setup costs are not covered. The rules offer clearer guidance for care providers and manufacturers, but limit reimbursement for some health-monitoring functions.
Source: Japan Visiting Nursing Foundation
Australia: Aged-care algorithm faces scrutiny
Australia’s Commonwealth Ombudsman criticized the automated algorithm used to determine home-care funding, citing inadequate safeguards and potentially unfair or inconsistent outcomes. The system, introduced with aged-care reforms in November 2025, has prompted appeals.
The Ombudsman recommended allowing senior assessors to override automated decisions, highlighting the importance of transparency and human oversight in care assessments.
Source: ABC News
EU: Long-term care demand expected to rise
New EU projections indicate that long-term care demand will increase substantially through 2075. Healthier ageing may mitigate demand, but declining household size and fewer older people living with partners or children could reduce informal caregiving capacity.
The findings underline the need for more formal home-care services, workforce investment and support for family caregivers.
Source: EU Publications Office
Taiwan: Dementia-care coverage gaps persist
Taiwan’s Dementia Prevention and Care Policy 3.0 aims to improve diagnosis, service coverage and dementia literacy by 2035. With an estimated 400,000 people living with dementia in 2026, uneven access to diagnosis and care across cities and counties remains a concern.
Expanding community services and caregiver support will be critical to translating national targets into equitable care.
Sources: Executive Yuan
Global outlook
Across regions, policy priorities are converging on home-based care, integrated services and technology. However, funding sustainability, workforce capacity, equitable access and accountable assessment systems will determine whether these reforms deliver meaningful improvements.
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