The agreement provides for an independent statement on “appropriate tariff increases”, which sets a maximum annual increase in surcharges on a percentage basis10 Funding for Capitation (a form of demographic funding for basic services) has been used to some extent in New Zealand since the 1940s and after the implementation of the basic services strategy11-13. primary health care has been the main funding mechanism for PHOs. PhO capita funding formulas have been described in more detail elsewhere,7,14-17, and as noted above, changes to formulas since the first implementation of the primary care strategy have been incremented and scalable. Some of the key milestones in the capitation formula over the past 18 years are shown in Table 1. . What are the justice effects for Māori, Pacifika and low-income families through the introduction of CCS into the capitation formula? I would like to thank colleagues for the helpful and edifying comments on previous drafts of this document and by the anonymous experts in the document. I assume full responsibility for errors or omissions in or in the accuracy of the information contained in this document.. . . Table 2: Additional capita funding for VLCA practices (in addition to core capitalisation). .