Agreement close on cheaper doctors' fees for over-45s

Many middle-aged patients can look forward to the likelihood of lower GP fees from July 1, with strong signs yesterday of agreement in funding talks.

The Herald understands the dispute over fees for 670,000 patients aged 45 to 64 has been resolved after months of wrangling that had threatened to delay the July 1 start of their subsidy by months.

GPs were invited by their leaders last Friday to notify their primary health organisations of proposed fees for these patients, to allow the subsidies to start flowing next month.

Final details of the agreement after talks involving PHOs, district health boards and GP representatives are being checked and a joint statement may be issued today.

Adults without subsidies pay $50 on average - and up to $80 in some areas. Fees are expected to drop to around $25 on average when subsidies are introduced and subsidised patients are also entitled to lower pharmaceutical charges.

Negotiations to extend subsidies to people aged 45 to 64 faltered last month when groups representing the bulk of GPs objected loudly to what they considered a Government bid to control patient fees.

District health boards denied they were trying to control fees, but said that as it was taxpayer money they were entitled to ensure the bulk of it was benefiting patients, as intended.

Many practices had reduced fees following new subsidies for other age groups, but some had quickly put them up, eroding the subsidy's value.

A general practice source said yesterday, when asked if the health boards had backed down on fees control: "I couldn't possibly say that. There's been movement that we feel fairly comfortable with."

The Herald understands the proposed new fees-review process - designed to check planned increases against a DHB benchmark based on independent economic advice - has been softened.

From July 1, the Government intends spending an extra $111.6 million a year on primary health care, as part of its $2.2 billion plan over seven years to extend low or reduced fees to the whole population.

Many population groups are already benefiting from this. From July 1, the subsidies are to spread to around 670,000 people aged 45 to 64 - those in that age group who do not already qualify by virtue of living in a poor area or suburb of high Maori or Pacific population.

The last age group to receive the subsidies, in July next year, will be those aged 25 to 44 who are not already subsidised.