Tuesday, 8 September 2026

Potential deregulations

Cato's Handbook on Affordability provides a set of policy recommendations for reducing unnecessary government-imposed costs. 

There's the usual stuff you'd expect, much of which is US-focused.

But a few bits are worth thinking about here too.

In the chapter on healthcare, Cato suggests automatic removal of prescription-only requirements from medicines. They write:

  • Eliminate prescription regulation. The FDA makes medicines less affordable by requiring patients to obtain unnecessary and costly prescriptions. Adults can safely self-medicate with many medicines—including birth control pills, HIV prophylaxis, and GLP-1s—for which the FDA currently requires a prescription. Overall, prescription regulation increases prices, increases the nonprice costs of obtaining medicines, reduces access, and ironically reduces patient safety. While direct-to-consumer platforms such as TrumpRx, Cost Plus Drugs, Amazon Pharmacy, and GoodRx can theoretically reduce prices by injecting transparency and competition, the more effective reform would be to strip the FDA of its power to require prescriptions. 
  • Remove unnecessary prescription requirements. If Congress cannot take prescription regulation power from the FDA, then Congress should enact rules that automatically remove prescription requirements after a certain period of time, which would allow consumers to purchase more medicines directly. Greater over-the-counter access would reduce the price and nonprice costs of medicines. 

John Key made pseudoephedrine-based cold medicines prescription-only. It seemed unlikely to substantially affect access to methamphetamine. Within about four years it was very clear that the policy failed. But it took about a decade more before that prescription-only status was removed. 

New Zealand could schedule review of longstanding prescription-only classifications, with a presumption favouring equivalent access where trustworthy overseas jurisdictions allow non-prescription access. Maintaining prescription-only status would require published justification that takes into account the added cost and burden imposed by prescription requirements.

In the chapter on childcare, Cato recommends expanding the supply of au pairs on the J-1 visa, simplifying the administrative burden facing households employing in-home care, broadening visas for childcare more generally (noting that a 10 percent increase in low-skilled immigration may reduce childcare costs by 2 percent), easing degree requirements for childcare workers, and subjecting car seat mandates to cost-benefit review.

A lot of those recommendations could carry over to here. 

The benefits of car seats for older kids aren't that big, and the costs are real. 

Immigration NZ guidance says that a niece or cousin visiting for six months to help with childcare is likely to count as working, with consequent need for a work visa. And if that work tallies to more than 30 hours per week, the relatively-simple IR56 isn't available. Surely a simplified visa and tax process could apply. 

The rest of the report's worth looking at - but mainly focuses on US issues or things that I've already covered otherwise. 

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