National to limit health subsidies

National would ditch Government plans for cheaper doctors' visits for all New Zealanders and may disband some health bodies, it confirmed yesterday.

Leader Don Brash released details of its intentions in a speech to the Auckland branch of the Medical Association last night.

National did not alert media to the policy unveiling until late in the day, but maintained it was not the launch of the party's health policy - rather an explanation of its framework.

But the handling and the lack of hype signalled National's concern that the plan may not be well received, and its awareness of considerable public sensitivity over any whiff of restructuring in health.

Dr Brash has already said National is unlikely to commit as much long-term spending to health as the Government has, which also leaves it vulnerable to political attack.

He stressed yesterday that changes would be "gradual" and said there would be "no major restructuring under a National Government".

Labour had implemented a costly restructuring which had failed to improve productivity and needed to be tackled.

"It is tempting to seek solutions in the form of drastic overhauls and restructurings. But major structural change could further destabilise and undermine a health system already in crisis," said Dr Brash.

The key policy planks were revealed by the Herald during its 'Informed Choice' investigation into health last month.

The Government is in the process of introducing universal subsidised doctors' visits, which all people will be entitled to by the middle of 2007.

The average price of an unsubsidised visit now is $50.

Those already eligible for the subsidies pay an average $25 a visit.

Dr Brash said the universal system meant support was too thinly spread.

"It is one thing to be taxed to help the needy - and nobody would quarrel with that - but it is quite another thing to be taxed merely so you can receive part of your money back by way of subsidy."

The party plans to subsidise people on low incomes only, although Dr Brash said details would be given later.

But he did suggest those on the lowest incomes might yet get greater subsidies under a National Government.

Under the current system "support to the most needy is less than it could be".

Addressing the audience of doctors, he asked "is it fair, and even defensible, to give no more assistance to a person on a low income than us?"

The Ministry of Health and the entities which reported to it would be subjected to a full review to "streamline operations and improve efficiency".