KEY POINTS:
Babies born here will no longer qualify for free health care if their parents are not eligible.
The Ministry of Health this week asked district health boards to start billing for such babies, starting from July 1.
The policy, which does not include ACC, was introduced in January last year but has only just been implemented.
Internal Affairs has said a 2005 law change means babies born here from last January will not be New Zealand citizens unless one parent is a citizen or permanent resident.
In the email to DHBs obtained by the Herald, the ministry said: "Parents may be distressed by charges and, in circumstances where high costs accrue, be unable to pay.
"However, the policy stance is intended to maintain the integrity of health eligibility settings and consistency with immigration policy and citizenship settings.
"I would expect DHBs to exercise appropriate discretion when determining the degree to which unpaid debts are pursued.
"Babies now receiving services under the temporary instruction to regard New Zealand-born babies as eligible should continue to receive necessary services without charging. At some point, they will either leave the country or their parents will gain a new permit to remain in New Zealand."
The policy is a reversal of that established by then-Health Minister Annette King in 2003 when the Government ruled that ineligible women from overseas would be required to pay for antenatal, postnatal and birthing costs.
She said at the time that "children born in New Zealand will still be entitled to a continuation of free care".
A ministry spokesman said yesterday the new policy reflected changes in the Citizenship Act from last year under which babies born here were not automatically New Zealand citizens.
He did not know how many babies were affected by the implementation of the policy.
The Auckland District Health Board general manager of children's and women's services, Kay Hyman, said: "We've had nine babies born since January 1 who we would have needed to charge, had we been charging - which is a lot less than the number of women we have charged for maternity care over that period." She did not have the latter figure.
She said children were eligible for state-paid care if either parent was eligible.
The Maternity Services Consumer Council co-ordinator, Lynda William, said her organisation supported the new policy.
"It isn't enough to be born here to become a New Zealand citizen - because of the numbers that were coming here simply to have their babies, giving them eligibility not just for free health care but for free education."
Who gets free health care?
* New Zealand citizens.
* Residence permit holders.
* Long-term (two years or more) work permit holders.
* Australians living permanently here.
* British passport holders living in Britain.
* Refugees and applicant refugees.