New Zealand is a high-income country in the Asia-Pacific region whose population was 5.1 million in 2021.[1] The country has provided comprehensive health care with a broad range of health services since 1947. Current health expenditure (CHE) in New Zealand was 9.48% of GDP in 2019[2] , while domestic general government health expenditure accounted for 75.6% of CHE[3] and out-of-pocket expenditure was 12.2 % of CHE in 2019[4].
Universal health care with government primarily fund
According to the Social Security Act of 1938, the government plays a primary role in providing for the health care needs of the population. New Zealand funds comprehensive health care mainly through government resources. Most health services are provided free. For example, primary care is free for children under 14. Immunizations and cancer screening services are usually free5. Minimal copayments are payable only for certain health services and products such as primary care visits and prescription drugs. People may also opt to buy private health insurance. About one third of the population has elected private health insurance to cover copayments[5]. In 1992, the Community Services Card (CSC) was introduced to provide health care subsidies for people meeting various eligibility criteria, including having low income. CSC beneficiaries are charged reduced prices for health services such as primary care visits, emergency dental care and prescription drugs.[6]
Following the enactment of the Pae Ora (Healthy Futures) Act in 2022, New Zealand has been transforming the health system to achieve better health outcomes. This transformation is in response to an aging population’s growing demand for health services and the need for better care for people with chronic health conditions. Following the enactment of the Pae Ora Act, new central government institutions were created: [EY11] [DB12] Te Whatu Ora (Health New Zealand) and Te Aka Whai Ora (Māori Health Authority). Te Whatu Ora is responsible for governing and commissioning health services, including the CSC, across the country and aims to enhance consistency in health care delivery nationally. Te Aka Whai Ora is responsible for governing and commissioning health services for Māori people, aiming for more equitable health outcomes among them.[7],[8]
[1] https://data.worldbank.org/indicator/SP.POP.TOTL?locations=NZ
[2] https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=NZ
[3] https://data.worldbank.org/indicator/SH.XPD.GHED.CH.ZS?locations=NZ
[4] https://data.worldbank.org/indicator/SH.XPD.OOPC.CH.ZS?locations=NZ
[5] https://www.commonwealthfund.org/international-health-policy-center/countries/new-zealand
[6] https://www.workandincome.govt.nz/products/a-z-benefits/community-services-card.html
[7] Te Aka Whai Ora / Māori Health Authority | Future of Health. Accessed 10 Oct. 2023
[8] Ahuriri-Driscoll, Annabel, et al. “The Future of Māori Health Is Here – The 2022 Aotearoa New Zealand Health Reforms.” The Lancet Regional Health – Western Pacific, vol. 28, Nov. 2022.
