The Prescription Subsidy Scheme

The Prescription Subsidy Scheme is a New Zealand government initiative aimed at making prescription medicines more affordable. It reduces prescription costs after a set threshold is met, helping individuals and families access essential medications without excessive financial strain. Below is a clear breakdown of how the scheme works, who administers it, and its benefits.

Who Offers the Prescription Subsidy Scheme?

The New Zealand government, through the Ministry of Health, runs the Prescription Subsidy Scheme. It’s part of the publicly funded healthcare system. Pharmacists play a key role by tracking prescription payments and issuing subsidy cards to eligible individuals and families. 

How the Prescription Subsidy Scheme Works

The scheme reduces prescription costs once an individual or family has paid for a specific number of prescriptions within a year. Key features include:

Annual Cycle

Runs from February 1 to January 31. Prescription payments are tracked during this period.

Eligibility Threshold

Once a household pays for 20 new prescription items, they become eligible. After this, they no longer pay prescription charges until the next cycle.

Family Inclusion

Prescription items from partners and dependent children aged 14 to 18 can be combined toward the 20-item total, making it easier to qualify.

Subsidy Card

Pharmacists issue a Prescription Subsidy Card upon reaching the 20-item threshold. This card allows cardholders to receive subsidised prescriptions at no charge for the remainder of the year.

Who Is Eligible?

Eligibility requires New Zealand residency or the appropriate permits to access publicly funded healthcare services, as outlined on health.govt.nz. This ensures the scheme benefits those integrated into the national healthcare system.

Scope and Limitations

The scheme applies only to subsidised or partially subsidised medications. Non-subsidised medicines still require full payment, even if the Prescription Subsidy Card is held. This underscores the need to understand which medicines qualify under the subsidy.

Benefits

The scheme particularly supports those with chronic conditions or ongoing medical needs. It reduces financial pressure on individuals and families needing regular prescriptions. It also complements other government support measures like the Community Services Card and High Use Health Card, furthering New Zealand’s commitment to equitable healthcare.

 Further information can be found here : www.govt.nz/browse/health/gps-and-prescriptions/prescription-subsidy-scheme/

Additional Pharmacy Initiatives: Free Prescriptions

Beyond the government scheme, some pharmacy chains offer further relief. Discount chains like Chemist Warehouse and Bargain Chemist or Woolworths pharmacies waive the standard $5 co-payment for subsidised prescriptions for fully funded medicines. These initiatives help customers who may not meet the government’s exemption criteria, such as those without a Community Services Card or outside specific age brackets.  

Sources:
Information was drawn from official New Zealand government websites, including govt.nz, health.govt.nz, and info.health.nz, along with the pharmacy-specific policies detailed on chemistwarehouse.co.nz and bargainchemist.co.nz.