The Morrison government is more inclined to toughen means testing than raise taxes to help fund aged care, as Liberal MPs warn it would be unfair to saddle younger generations with the health costs of their forbears.

While Prime Minister Scott Morrison wants to keep the option of a tax hike on the table for now, some experts in the sector, as well as former Treasury secretary Ken Henry, suggested both a tax rise and means testing would be required to meet the massive cost of fixing the troubled system.