From 1 July 2027, Labour will remove the $5 fee on prescriptions to make them free for every New Zealander who is entitled to free public healthcare.
- $5 prescription fee removed for every New Zealander entitled to free public healthcare, at every pharmacy
- Currently, free prescriptions only apply to those aged 14 and under, 65 and over, or with a Community Services Card
- Starts 1 July 2027
- Estimated cost: $74.5 million a year, funded by Labour's targeted capital gains tax
- No forms and no claiming money back
- Sits alongside the Medicard's three free doctor's visits, free cervical screening and free maternity scans
Why make this universally available?
Last year, 155,000 New Zealanders didn't collect medicine they'd been prescribed because they couldn't afford it.
When people skip medicines because of cost, small problems can become big ones and cost the health system more in the long run. A recent study in the New Zealand Medical Journal found people who couldn't afford their prescriptions were 35 percent more likely to end up in hospital.
Medicine isn't a luxury - it's basic healthcare and should be there for everyone. Making medicines free keeps people well, keeps them out of hospital, and takes pressure off the whole health system.
Labour's Medicard plan
The Medicard is Labour's plan to make healthcare more affordable. It gives every New Zealander three free doctor's visits a year, free cervical screening and free maternity scans. Free prescriptions will sit alongside our Medicard.
Who will be entitled to free prescriptions?
Everyone in New Zealand who is entitled to free public healthcare. Currently, free prescriptions are only available to those aged 14 and under, 65 and over, or with a Community Services Card.
Why make this universally available?
- Last year, 155,000 New Zealanders didn't collect medicine they'd been prescribed because they couldn't afford it.
- When people skip medicines because of cost, small problems can become big ones and cost the health system more in the long run. A recent study in the New Zealand Medical Journal found people who couldn't afford their prescriptions were 35 percent more likely to end up in hospital.
- Medicine isn't a luxury – it's basic healthcare and should be there for everyone. Making medicines free keeps people well, keeps them out of hospital, and takes pressure off the whole health system.
How will this be paid for?
Removing the $5 fee is estimated to cost $74.5 million a year. It will be funded by the revenue from a simple, targeted capital gains tax that only applies to the profit when a commercial or investment property is sold (excluding the family home, farms, businesses, inheritance, and KiwiSaver). Every dollar raised by the CGT is ring-fenced for health.
When do prescriptions become free?
From 1 July 2027, the $5 fee will be removed for every New Zealander entitled to free public healthcare, at every pharmacy.
Three free doctor's visits and free prescriptions.
Money back in your pocket - just the start of how life will get better with Labour.
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