I have never had any form of medical exemptions (aside from when I was a child), and have thus managed to live my life without taking any medication whatsoever. Whilst I empathize with the fact that T1s could find themselves paying slightly more for their hypo treatments, at 20% (say, like VAT), what would that actually amount to each month? How many hypos does an average T1 have per month, and what is the actual, gross, cost of treating each hypo, in terms of additional drinks or eats?
I am enormously sympathetic to those with T1. I am very please to have been able to grasp my T2 quickly, and thus far, effectively, but I do question why I should be subsidizing all medication for those who happen to be diagnosed with (any type) of diabetes, rather than the life saving medication we all hear about.
That's not me being mean to anyone, it is stating my own feelings, and quite possibly those of other people, in similar positions to myself. To be honest I would far rather be able to remain healthy than to have a "right" to a medical exemption.
And, for the avoidance of doubt, I feel pretty certain that medical exemptions are handled as they are due to the complexity of policing them at a level any more granular than we have now. Perhaps over time, as more pharmacies are internet enabled, and systems develop, some form of electronic card (or the like) would cope with it, but for now, I think we are where we are.