Budget 2023

Budget 2023 marks year two of the multi-year funding approach, with $1.3 billion set aside to address future cost pressures. This allows for better planning and more consistent health services.

$5 prescription co-payment removed

Budget 2023 has provided $707 million over four years to remove the $5 prescription co-payment (note - there is an impact from Vote Social Development due to changes in the level of Temporary Additional Support and Disability Allowance paid and the net cost of this initiative is $619 million).

An estimated three million people will no longer have to worry about the cost of collecting their medication. Removing this financial barrier to prescription medicines will help ensure New Zealanders are able to get the medicines they need when they need them to improve their health and wellbeing. This will also help reduce the pressure on hospitals and other services.

This applies to $5 co-payments for prescriptions by approved providers and not specialists or dentists where a $15 co-payment applies. It is expected the initiative will go live from 1 July 2023. Te Whatu Ora will lead the implementation.

Cyclone Gabrielle

• As part of the North Island Weather Events package, $35 million in funding is dedicated to a number of health initiatives. We know from other disasters that mental health and wellbeing impacts emerge over time. This package includes $10 million to provide additional psychosocial support, including $3.75 million for the expansion of the Mana Ake programme into Hawke’s Bay and Tairāwhiti. It also provides $6.1 million to cover community, primary and residential care, including workforce relief for locum GP, pharmacy and nursing staff, an increase funding for air ambulance for an additional six months and improved access to online GP, community health, mental health and addiction, and registered nurse consultations
• There is also $8.9 million in funding for air and road transport enabling planned care, outreach and other hospital services for isolated communities, alternative provision of acute healthcare and urgent repairs to hospital facilities.
• There is $1.7 million for transport and power for leasing suitable vehicles to provide for patient access, and generators and diesel so services can continue to be provided while repairs are undertaken.
• Finally, $8.3 million is being provided for the targeted Hauora Māori disaster response. This is for urgent services that support whānau wellbeing and the community. It will be utilised for direct and flexible funding for Iwi and Māori health partners, and the Māori psychosocial response.

Prioritised spending for 2023/24

The Government is focused on three key health priorities – winter, workforce and waitlists, as well as the health reforms and equity. Existing funding for the coming financial year has now been allocated by Te Whatu Ora to align with the Government’s priorities.

For more information: Health | Beehive.govt.nz