Perspective with Heather du Plessis-Allan: Another Labour health policy where the numbers don't add up

Author: Newstalk ZB,
Publish Date: Thu, 18 Jun 2026, 7:33pm

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This is Labour's fourth health policy to be paid for by its proposed capital gains tax. Photo / Mark Mitchell

So, we’ve had yet another Labour health policy announced - and, once again, it has problems with its numbers.

This one is a revival of the free prescriptions idea. You’ll remember Labour introduced this in 2023 when it was in Government. It scrapped the $5 fee you pay when you pick up a prescription.

The coalition Government then reinstated that $5 charge as soon as it won the election.

Now Labour is promising to remove the cost again, bringing it back down to zero - at a cost to the taxpayer of $75 million a year.

So, what are the problems with the policy?

First, they claim people will save up to $100 a year. That implies 20 prescriptions annually (100 divided by 5 equals 20). But I’m calling bollocks on that. Since Labour was last in power, you no longer have to refill prescriptions every three months - you only need to do it once every 12 months.

So, the only way you’re hitting 20 prescriptions a year is if you’re on 20 different medications, or you’re on a lot of medication and also need frequent courses of antibiotics throughout the year. For most people, that simply doesn’t stack up.

Second, can you already get free prescriptions? Yes, you can. Where? Chemist Warehouse.

That means this policy doesn’t help those people at all - they’re already getting their prescriptions for free. If anything, it helps Chemist Warehouse, which will now be able to charge the Government for a cost it has been absorbing until now.

Third, can you get free prescriptions if you’re very poor and can’t afford the $5? Yes, you can - through the Community Services Card.

So, what does that leave? A very small group of people: those who don’t live near one of the approximately 70 Chemist Warehouse stores in New Zealand and who don’t already qualify for a Community Services Card.

And the idea that those people will save up to $100 a year? I think that’s bollocks.

This is the third Labour Party policy in two weeks where the numbers don’t add up.

Do better, Labour.

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