University of Otago Va’a o Tautai Centre for Pacific Health research professor Pauline Norris said she was surprised and happy with the decision to axe prescription fees, announced last week as part of Budget 2023.
Less pleased was the National Party — leader Christopher Luxon said it did not support the initiative — and Act New Zealand, which said most people could afford the fee.
Health Minister Ayesha Verrall said the change, set to take effect from July, would ease household budgets while relieving pressures on hospitals.
About 135,000 adults did not collect their prescriptions because of cost in 2021-22, Dr Verrall said.
However, Act deputy leader Brooke van Velden said most people did not have a problem paying the $5 charge and its removal was an untargeted "lolly scramble".
"The Government is giving five bucks to a lot of people who don’t need it, when they could have delivered a real change in healthcare outcomes to those most in need," she said.
Prof Norris said the Government’s decision was appropriate, as poorer people tended to have more health problems.
It was people who used a lot of prescription medicines who would be most impacted.
"We’re really happy about this — it will make a huge difference to lots of people’s lives.
"If you try to target something like this there’s a big risk that the people who need it most will miss out," she said.
People who were very vulnerable might not be engaged with bureaucracy, and, for example, might not have a community services card.
"Although it’s not targeted in terms of income, the people who need it the most will be benefiting the most."
The Government’s announcement followed the January publication of a study led by Prof Norris, which found prescription charges prevented some people from getting their medication, and led to higher hospital admission rates.
More than 1000 people with physical and mental health problems which required medication took part in the year-long study.
They were randomly assigned to one of two groups — control or intervention.
People in the control group were required to pay the $5 fee as normal, while those in the intervention group did not.
Instead, pharmacies billed the study authors.
The results showed for every 100 people who received free prescriptions, 33 were admitted to hospital and stayed for 208 days.
For every 100 people who still had to pay the $5 charge, 41 were admitted to hospital and stayed 326 days.
