National could scrap universal health help

National wants to abandon planned universal subsidies on doctors' visits and prescriptions for 18 to 64-year-olds.

Instead, health spokesman Paul Hutchison wants better targeting of the millions of dollars the Government plans ploughing into those areas.

Dr Hutchison, who has only had the portfolio since last week's reshuffle following MP Katherine Rich's demotion, said he personally favoured abandoning the universal subsidies for the 18-64 age group.

National's health policy is six to eight weeks away from being released.

Dr Hutchison said he was looking at "the principle of using scarce health dollars where they are most needed".

National was not looking at reversing the subsidised primary health subsidies already introduced for those under 18 or over 65.

Dr Hutchison said there was no evidence of the benefit of universal primary care subsidies compared to targeted subsidies in the 18-64 age group.

"I'm very concerned that there is in the Primary Health Strategy, a plan to roll out over $400 million in subsidies over the next few years. We've got to make every health dollar count."

However, Dr Hutchison said the Primary Health Organisation system would not be dismantled by National as he believed the health sector was suffering "restructuring fatigue".

The Government has been rolling out a new subsidies system through two types of PHOs - access and interim - since 2002.

New fees and subscription subsidies will start reaching 18 to 24-year-olds in July, 45 to 64-year-olds in July 2006 and 25 to 44-year-olds in July 2007.

The cost of the system is projected to rise from $58.3 million in 2005-06 to $212.5 million in 2007-08.

Primary health care strategy costs

* 2005-06: $58.3m
* 2006-07: $144.9m
* 2007-08: $212.5m