Cheaper health care by 2007, Government announces

11.45am

Primary Health Organisations will offer everyone cheaper visits to the doctor and low-cost prescriptions by July 2007, five years earlier than anticipated, the Government announced today.

Prime Minister Helen Clark and Health Minister Annette King said an extra $415 million was being put into the public health system over the next three years to provide cheaper care.

On current PHO membership rates, about 3.5 million people would be entitled to it, they said.

Cheaper doctors' visits and cheaper prescriptions will be rolled out for 18 to 24-year-olds in July next year, for 45 to 64-year-olds in July 2006, and for the rest -- the 25 to 44-year-olds -- in July 2007.

The ministers said there would be a standard prescription charge of not more than $3 per item, higher subsidies for influenza injections for older people, and other benefits.

"Almost all New Zealanders are expected to benefit because of the huge momentum PHOs have developed," they said.

"Just two years after the first two PHOs were established in South Auckland, 3.57 million New Zealanders now belong to PHOs and some two million of them are already entitled to cheaper doctors' visits and subsidised prescription items even without this latest investment."

In total, the Government has now committed $1.7 billion over six years since 2002 to providing cheaper health care.

Ms King said she had originally estimated it would take eight to 10 years to provide funding to implement the primary health care strategy.

"I was clearly too cautious, and underestimated the enthusiasm with which the PHO model would be adopted," she said.

"The new funding the Government is announcing today will be used to fast track universal low cost health care far more quickly than I had ever believed was possible."

A PHO is a group of providers who look after people enrolled with them. They all include a family doctor and may include nurses, pharmacists, dieticians, Maori health providers and mental health workers.

"They give us one of the best chances we've had in years of truly making a difference to the quality of life in this country," Ms King said.

- NZPA