Thousands get cheaper doctors' visits

More than a quarter of a million New Zealanders should be entitled to cheaper doctors visit from today - although a funding row could cause delays in some practices.

The $17.2 million in extra funding will enable all 18 to 24-year-olds enrolled with primary health organisations (PHOs) to have subsidised visits.

Unsubsidised visits now cost around $50 and the funding will enable doctors to take off between $23 and $26 a visit.

Eighteen to 24 year-olds and others who live in poor areas or areas with high Maori and Pacific populations already have the subsidy, as do the elderly and those aged 6 to 17.

When the funding roll-out is completed in 2007, all people enrolled in a PHO will be similarly subsidised.

The standard prescription charge for those enrolled with PHOs will also fall from $15 an item to $3 from today.

The Auckland District Health Board estimates 25,594 extra people in its area will qualify for cheaper visits from today, and 12,636 in Counties Manukau.

However, a row has erupted between some PHOs and district health boards over the Ministry of Health's demand that all of the funding should be used to reduce charges, creating a deadlock in some cases.

Mark Wills, of Auckland primary care group ProCare, said a significant number of the PHOs had yet to resolve the stand-off.

But he said there had been considerable negotiation yesterday and he anticipated that would result in movement.

Health Minister Annette King said yesterday she was "relaxed" about the process - which has come under GP fire - and the progress.

"More than 80 per cent of practices have already signed up and others have another month's grace to work through the final detail of agreement with district health boards."

Prime Minister Helen Clark yesterday heralded the spending as another example of the Government's commitment to health spending rather than "reckless tax cuts".

A raft of other changes taking effect today were further examples of the Government building a platform of achievement, she said.

These included the phase-out of asset testing on older people in continuing care, starting at around $103 million a year, and rising to $345 million in 2020.

Maximum paid parental leave entitlements would also increase today, from $346.63 a week to $357.30.

And the income eligibility thresholds for the Mortgage Insurance Scheme would change to make thousands more first-home buyers eligible.

Health changes

* Cheaper GP visits for 18 to 24-year-olds.

* Prescription charges down from $15 to $3 an item (PHO patients only).

* Start of phase-out of asset testing on older people in continuing care.