The Government has confirmed universal free prescriptions will be axed in July with the $5 co-payment restored for most New Zealanders.
However, prescriptions will stay free for people with Community Services Cards, people under 14, and people aged 65 and over. The short-lived scheme was first introduced by the former Labour government 12 months ago.
Health Minister Shane Reti revealed details about the change at Budget 2024.
"To help ensure resources are targeted to those who are most in need, the $5 prescription co-payment will be reinstated for people 14 years and over. The resulting savings will help fund ongoing provision of essential medicines," he said.
"Prescriptions will continue to be free for people with Community Services Cards, people under 14 years of age, and people aged 65 and over."
Prescription co-payments will return from July 15, Finance Minister Nicola Willis told media gathered at Parliament.
This would give the health system estimated net savings of $116 million over five years, which the Government says will be re-invested into frontline services. It has also previously promised to use the money to help fund new cancer drugs.
Reti also announced a "significant funding boost" of $16.6 billion "across three Budgets as part of" the Government's plan to invest in health.
“Our Government has set ambitious targets for the health sector. We are committed to improving the frontline health services that New Zealanders rely on, with shorter wait times for assessment and treatment," he said in a media release.
“We want the health sector to plan for the future with confidence, knowing our Government will always prioritise increased investment for the services it delivers.
"That’s why we are confirming today not just health funding increases from this Budget, but pre-commitments for additional funding from our next two Budgets as well."
Free prescriptions axing signalled
National promised to scrap the universal prescriptions policy during the election campaign, with exceptions for SuperGold and Community Services Card holders.
The Prescription Subsidy Card will also continue to limit the total number of co-payments an individual or family will pay to 20 per year - the pharmacy year is February 1 to January 31.
The confirmation of the axing will come as a disappointment to many independent pharmacists - who have called on Reti to keep the subsidies.
Pharmacists are asking the incoming government to think of them as health professionals, "not tax collectors". (Source: Breakfast)
Opposition parties have previously used the changes to attack the Government on cost of living. Labour leader Chris Hipkins has promised to help restore universal free prescriptions if his party was brought back to power.
"Vital preventative healthcare like free prescriptions and cheaper doctors' visits is not wasteful spending," he said in March. "National’s plan to slash spending on the public services New Zealanders rely on to fund tax cuts will leave us all worse off."
Meanwhile, Green Party co-leader Chlöe Swarbrick said tax cuts would be "crumbs" compared to the axing of fees-free prescriptions and other decisions. She suggested "life would be all the more difficult for anyone but those at the top."
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