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The Pharmaceutical Journal
Vol 271 No 7266 p320
13 September 2003

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Abolish prescription charges and win the next general election

By Noel Baumber, FRPharmS

Noel Baumber is an independent pharmacy contractor in Lincolnshire

Prescription charges have been with us through two generations and 17 increases, but only two virtues come to mind in their favour. First, they limit the paying patient’s liability to the value of the current charge (£6.30) although the average cost of the medicine and the service exceeds £10.89 per item and medicines can cost up to £250 per pack. Secondly, pharmacy contractors’ cash flow improves marginally by the amount of charges collected in a month. Everything else seems to be negative and capable of ruining relationships between prescribers, patients and pharmacists.

Prescription charging becomes more contentious, troublesome and divisive with every increase, so it is about time someone totted up the “downside” costs of raising taxes the way we do or, to put it another way, of seeing what can be bettered by not having to pay charges.

The downside
The downside is quite surprising in its ramifications. Exemptions, for instance, have always stimulated argument and resentment as they are unfair and arbitrary. They exist because charges exist and now extend to 85 per cent of patients, but every exempt patient has to provide evidence of their claim; a wholly unreasonable task worthy of George Orwell’s imagination. Charging can affect compliance and mean that some patients find themselves picking and choosing which prescription medicines they can afford.

I could not find any statistics on the consequent costs of authorising exemptions and maintaining records for each and every category, but the prescription charge is not a clear profit for the Government.

There are problems and knock-on costs borne by the social services, but what are they? The Prescription Pricing Authority now has to conduct 400,000 compliance checks each year, and has accepted the centralised task of issuing in excess of a million pre-payment certificates.

There are legal costs, too. So far there have been 163 prosecutions resulting from charge evasion where patients have had to be pursued through the courts. These burgeoning problems can be made to vanish by abolishing charges.

Wales has shown that things can change. In the principality, you pay for prescriptions only between the ages of 25 and 60 years. The Social Market Foundation think tank recently called for a new system of charges and a £90 per year limit; presumably so that patients can accrue “pre-payment” status as their needs become apparent. There is no simple system of charging and exempting patients. The Welsh Labour Party goes furthest and wants to abolish charges completely. This may seem like a return to Aneurin Bevan’s enthusiastic idealism but it is not a crackpot idea.

Why bother with indirect taxation?
Her Majesty’s Treasury will regard prescription charges as indirect tax worth £446m in the current year, but this is only levied on 15 per cent of patients, most of whom will be taxpayers who can contribute either way through direct or indirect taxation. Why bother with indirect taxation when it amounts to less than 0.5 per cent of income tax revenue, which stands at £97,500m per annum? Prescription charge income amounts to only £16 per taxpayer; less than half a tankful of petrol per year, or two and a half prescription items!

I am not so sure that charging limits the volume growth or medicine costs in an acceptable way, and the Department of Health, much to its credit, is positively tackling medicine costs in other ways. Professor Geof Booth, a former president of the Royal Pharmaceutical Society, showed over 30 years ago that charge increases only have a temporary braking effect, probably at the expense of those least able to afford higher levels of charging. In any case, much of the current growth is intentional due to the introduction of national service frameworks for coronary heart disease and diabetes in an ageing population. As pharmacy contractors have seen to their cost, remuneration for providing the service is under rigid political control and remains unaffected by prescription volume.

Other problems
Pharmacists have other problems with the system. When general practitioners write prescriptions for two or three months’ medication instead of one month, pharmacy income decreases substantially. When prescriptions reduce to one month’s medication, patients who pay charges become incensed and berate the pharmacist and the GP.

For years I resented having to pay charges when credit cards were presented in payment for prescriptions. I did not realise how much I resented it until I discovered that I was being charged over £800 per annum for the convenience of people who no longer carry cash. Introducing a credit card charge seems to have minimised the problem for now, but I suspect that I am not the only one who is losing out from the move from cash to cards. Even at £500 per annum per pharmacy, this is a loss of £5m to the infrastructure of community pharmacy.

Repetitive strain injury
All contractors try to avoid placing prescriptions in the wrong bundle since prescription switching loses them £300,000 per annum, so I now find myself getting repetitive strain injury from signing more prescriptions per day than a GP, mostly on behalf of elderly patients who cannot visit the pharmacy to claim exemption. Going through the day’s prescriptions is not only tedious and painful, but takes about an hour to verify and make valid claims for exemption. Even if this is undertaken by dispensing staff, it amounts to some three million hours of wasted time every year throughout the country.

A total of £12m goes into the pharmacy contract to recompense prescription checking, but the true cost to contractors of this inessential bureaucratic task is somewhere between £30m and £60m, and carries criminal penalties for getting it wrong. Moreover, while we are scanning prescriptions for the NHS Counter Fraud and Security Management Service we are losing our most

valuable asset — time — and not even considering the opportunity cost of converting those hours into positive patient benefits. Where are politicians going with this creeping bureaucracy? What will it do for recruitment? What is the profession doing about it?

New contractual demands
If pharmacists already working 50 to 70 hours a week are expected to find more time for patients and meet new contractual demands — medicines management, repeat dispensing, continuing professional development, clinical governance, competence testing, supplementary prescribing and increasing service commitments — then abolishing prescription charges comes high on my agenda as a means to an end. It is a timely and serious matter for pharmacy contract negotiators. For the political party that cares about quality of life, it could even help to win the next general election. They can have my £16 any day!


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