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Vol 274 No 7340 p293
12 March 2005

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News feature

Is it time to end prescription charges?

Prescription charges will go up in some parts of the UK on 1 April. Clare Bellingham investigates whether an end to prescription charging is in sight

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DoH: Prescription charge increase stays the same


Prescription chargesPrescription charges will go up by 10p in Scotland on 1 April. A similar rise is expected in England. However the Department of Health would only confirm that an announcement was due to be made this week after The Journal went to press; it would not provide any details.

Increasing prescription charges is unlikely to be popular since criticism of charges is now widespread. What is interesting is that this criticism comes not only from those who have to pay charges but from a broad range of organisations, including the Royal Pharmaceutical Society. Has the time come to review the charging system?

In Wales, the answer is a resounding “yes”. The Welsh Assembly has already committed itself to introducing free prescriptions for everyone in 2007. The first step towards achieving this aim was made in 2001 when prescription charges were frozen at £6. This was followed last October by a cut in charges to £5. And this week a Welsh Assembly spokesman confirmed that prescription charges will be reduced again in April to £4 per item.

However, the governments in England and Scotland have not followed suit — not yet anyway. The Scottish Executive is undertaking a review of prescription charges for people with chronic conditions and young people in full-time education. A public consultation is expected later this year. Furthermore, in January, a Member’s Bill calling for the abolition of prescription charges was introduced in the Scottish Parliament.

Why the criticism?

It is worth considering why prescription charges attract so much criticism. Earlier this year, the Society published a report calling for prescription charges to be abolished (PJ, 15 January, p65). Eileen Neilson, head of policy development at the Society, says that the report’s conclusions are clear. “Charges do not just deter unnecessary use of medicines; they also deter essential use of medicines in people with non-exempt chronic conditions. That has adverse consequences for their health and for costs elsewhere in health systems, such as unplanned hospital admissions,” she explains. The Society sent its report to the Department of Health but last week received a reply indicating that the Government has no intention of changing its policy on prescription charging.

For some people, prescriptions charges are incompatible with the fact that the NHS was founded on the principle of free health care at the point of delivery for all. Nye Bevan, who is credited with introducing the NHS when he was health minister in 1948, resigned in 1951 when the then chancellor announced his intention to introduce prescription charging. However, for many people, the crux of the matter is that the current system of determining who should pay charges is simply unfair. This is summed up in the Wanless report, “Securing our future health”, which states: “The present structure of exemptions for prescription charges is not logical, nor rooted in the principles of the NHS. If related issues are being considered in future, it is recommended that the opportunity should be taken to think through the rationale for the exemption policy.”

According to prescription statistics published by the DoH in England last year, around 50 per cent of the population are eligible for free prescriptions but for about 87 per cent of all prescription items dispensed no charge was levied. Those who are exempt from charges include children, the elderly, people who are unemployed or on a low income, people who receive certain state benefits and people who are exempt due to medical conditions. It sounds like a fair list but there are inconsistencies. For example, a multimillionaire aged 70 years is entitled to free prescriptions yet a 25-year old with a low income just above the cut-off point for free prescriptions has to pay. The National Association of Citizens Advice Bureaux investigated the issue in 2001 and found that 12 per cent of its clients surveyed failed to get their prescription dispensed because of the cost and a further 16 per cent only collected part of their prescription.

Medical exemptions are a minefield. The only medical conditions for which patients are entitled to free prescriptions are a permanent fistula, hypoadrenalism, hypopituitarism, diabetes mellitus, hypoparathyroidism, myasthenia gravis, myxoedema, epilepsy and a continuous physical disability resulting in the patient requiring the help of another person. Pharmacists are frequently asked why a patient with one chronic condition receives prescriptions free whereas another patient with a seemingly more serious condition does not: answering that the categories were set many years ago is hardly satisfactory. Colin Fox MSP, who is behind the Scottish Bill to abolish prescription charges, says: “Abolition would bring to an end a system which only grants exemptions to all the sufferers of some chronic conditions but denies it to all those others with equally or more serious chronic conditions. Abolition would thus ensure greater fairness by enabling all sufferers of chronic illnesses to obtain free prescriptions.”

What should be done?

If it is agreed that prescription charges are unfair, what should be done? The Society lists a number of options:

· Abolish charges altogether
· Introduce a lower charge with fewer exemption categories
· Introduce reference pricing: a basic medicine is paid for by the NHS but patients can opt for more expensive treatments if they pay the difference
· Extend the list of chronic conditions exempt from charges
· Make prepayment certificates cheaper
· Make other cost cuts in the NHS, such as increasing the use of generic medicines

Abolishing charges would be a popular move with the general public, but it seems it might be less popular with those working in the NHS. On the positive side, making prescriptions free would increase the uptake of prescriptions so, providing the right medicines are prescribed and they are taken as intended, this should prevent illness and cut hospital admissions. Abolishing charges would also get rid of the current inequity in the system. However, this has to be balanced against the negative arguments. Prescription charging brings in an income for the NHS that would have to be replaced. Greater take-up of prescriptions would have an impact on workloads for both community pharmacists and GPs. Other concerns for community pharmacists include the possibility of free prescriptions cutting the use of (and therefore income from) over-the-counter medicines, and there are question-marks over what would happen to minor ailments schemes. In addition, one often-mentioned argument in favour of prescription charges is that they deter frivolous use of medicines. But the Society’s report concluded that there is no evidence to support this.

The opinion in Wales is simple: abolishing charges is the only fair approach. Welsh Assembly health minister Jane Hutt said last year: “To introduce exemptions to certain groups would be complex. … Our proposals are straightforward and effective. This way everyone benefits — chronically ill, the low paid, everyone.” Whether the Scottish and English governments take the same approach remains to be seen.

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