New Zealanders needing to travel for specialist health treatment will receive an $18 million boost to cover costs, the government says.
Health NZ currently spends $33 to $35 million a year on the National Travel Assistance (NTA) scheme, which last had increases to mileage and accommodation rates in 2009.
"These changes are long overdue," Health Minister Dr Shane Reti said.
He said mileage rates would rise from 28 cents to 34 cents a kilometre and nightly accommodation rates from $100 to $140 a night.
Those staying with friends or whānau would get a bump from $25 to $35 a night and there would also be more flexible payment options, including pre-payment and the ability to do more online.
Reti said new payment options would be piloted and phased in.
While some districts offered pre-payment options, most whānau currently needed to fill out paper-based forms to seek reimbursement after travelling, he said.
There would also be eligibility changes to better target those in need and better promotion and awareness of the scheme.
The NTA provided critical financial assistance for people needing to travel for treatments like cancer, renal dialysis, diagnostics or other complex care that could not be provided locally, he said.
"Outdated reimbursement rates, a bureaucratic claims process and local variations have seen some New Zealanders unable to access it properly.
"As a result, because some families can't afford the upfront costs, they delay treatment, or choose less effective local treatment," said Reti.
"That's unacceptable and needed addressing."
Reti acknowledged the advocacy of the Cancer Society and other key NGOs who pushed for change.
The changes would be delivered in stages, with the rate increases and an easier email claiming option first up from 1 April.
The government expected about 4500 New Zealanders to benefit from this funding boost.