ABSTRACT
This chapter examines changes in the composition of health charges and of their role in the finance and delivery of health care. Under the influence of Mrs. Thatcher's premiership, the 1980s had been a relatively bullish time for increasing health charges. In addition to the 1980s witnessing substantial increases in existing charges, towards the end of this period, consideration had also been given to the possibility of extending the charging principle to other elements of the service. Imposing charges, particularly upon prescribed medicines, is necessary in order to deter frivolous consumption and also, to provide additional revenue for the National Health Service. Devised by Labour in 1968 when prescription charges were reintroduced, exemptions have been extended since then by both Conservative and Labour governments. The limitations of the prescription charge are clearly in evidence with respect to charge income and of recovering a proportion of the net ingredient cost of prescribed medicines.
