Budget 2005: Health sector gets nearly $1b new money

This year's health budget is the biggest ever with $9.68 billion going to the sector.

Health will get $969.7 million of new funding in 2005-06 and $4.09 billion over the next four years.

Health funding has steadily increased over previous years -- last year the sector's budget total was $9.1 billion.

Health Minister Annette King said Vote Health accounted for about 20 per cent of all government spending.

"The Health Funding Package continues to be an effective method of funding ongoing health expenditure, providing the health sector with the certainty it needs," she said.

The budget increased funding for inflationary and demographic pressures by $387.6m over the next four years.

"All this amounts to a huge investment in fair equitable and sustainable public health services in New Zealand," she said.

The budget also provided:

* $22m towards implementing the Mental Health Blueprint over the next year and $222m over four years;

* $31m for 2005-06 for the meningococcal vaccine campaign;

* it also continues funding for upgrading public hospitals;

* and provides $142 million over four years for the Cancer Control Council, increased support for hospices, a range of cancer control initiatives and extending free breast screening for all women aged between 45 and 69;

* $17.2m for cataract operations was announced this month.

One group to benefit from new funding was the elderly, with $93m in the coming year to help phase out asset testing for residential care.

Associate Health Minister Pete Hodgson announced the money would cover changes to asset test thresholds.

From July 1 single people and couples with both partners in care will be able to keep up to $150,000 in assets, including both property and savings, before their assets are used towards care costs -- up from $15,000 and $30,000 respectively.

Couples with one partner in care can keep current exceptions of their house and car and their cash exemption will rise from $45,000 to $55,000.

Exemption thresholds for all groups will increase by $10,000 per year from July 2006.

"As these changes take effect, more older New Zealanders will be able to retain more of their assets while receiving residential care," Mr Hodgson said.

Residential care for the elderly got a $70.9m boost -- $38.4m to cover growing demand and inflation and an additional $32.5 million.

The money would be to District Health Boards (DHBs) to pay contracted providers of residential care services.

District Health Boards got more than half a billion dollars over four years to help meet the recent historic nurses pay settlement.

DHBs would get $102m over the coming year and $549.5 over the next four years.

Ms King said the funding would help with recruiting and retention. DHBs would still contribute towards the settlements from their existing budgets.

An additional $59m goes to residential disability support services and assessments.

Of that $29.6m will cover population and inflation changes and the remainder is split between Kimberly Centre residents ($14.4m), younger people needing residential care (8.4m) and to improve assessment and service coordination ($6.6m).

Home-based care services got $18.7m more to improve quality and working conditions and cover increases in the cost of services funded by DHBs or contracted by the Health Ministry.

The budget also provided $17.2m in 2005-06 and $74.4m over the next four years to provide low cost doctors visits for 18-24 year-olds.

The new money is expected to benefit just over 230,000 people enrolled in interim PHOs.

From July next year funding will be extended to 45-64 year-olds enrolled in PHOs and all other New Zealanders in PHOs from July 2007.

ACC Minister Ruth Dyson announced $19.4m towards treatment costs and rehabilitation over the next four years.

"More people with injuries will pay less as a result of increases to health care entitlement," Ms Dyson said.

The package includes $9.5m to ensure ACC's contribution towards treatment consultations keeps up with increasing costs.

A further $3.7m spread over four years will go towards extending the scope of clinical specialist groups, such as neurologists and gynaecologists, and treatments covered by subsidies.

Another $1m over four years goes to cover counselling sessions required when ACC determines cover on sensitive claims.

- NZPA