MEDIA RELEASE

10 June 2011

Guild backs call for more discussion on targeting subsidies

The Guild supports comments made by RNZCGP President, Harry Pert, in the latest NZ Doctor magazine that it is time to discuss whether the country can continue to afford universal subsidies.

"Better targeting of subsidies would lead to savings in health expenditure by focusing on patients that are in greater need of low cost access to healthcare," says Pharmacy Guild Chief Executive, Annabel Young. "Money can only be spent once and the effect of universal subsidies is that it is spent where it isn't needed".

Ms Young says the comments made by Dr Pert are timely and relevant because they underline an important message the Guild is seeking to get across.

"Currently, patients who can afford to pay more, have relatively cheap access to medicines when they don't need this helping hand. The reverse also applies - a low income patient gets the same amount of government subsidy as a wealthy patient. This model is inequitable between patients and unsustainable for a cash-strapped Government," says Ms Young.

"Currently most patients pay a standard $3 co-payment for a GP's prescription until they or their family reach 20 scripts per year at which point the co-payment reduces to zero. The Guild wants the government to reconsider whether the flat $3 rate should apply regardless of income and also the number of medicines that trigger the zero rate. Given the shortage of government money, we also want them to consider whether the $3 co-payment should be raised, perhaps based on the CPI."

"The balance isn't right and the effect is that money is syphoned out of the health system to pay for medicines for people who don't need the high levels of subsidy that they get at present."

ENDS

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