Govt Increases Access to Medicines for Kiwis with Record Funding for Pharmac

Pharmac has made significant strides in reducing the time required for decision-making processes, particularly for the Named Patient Pharmaceutical Assessment (NPPA).

Associate Health Minister David Seymour has commended the Government’s dedication to improving medicines access for New Zealanders, resulting in significant advancements in the funding and availability of pharmaceuticals.

“In the first half of the current financial year, Pharmac expanded access to more new medicines than in the entire previous financial year. This demonstrates our commitment to putting patients first,” said Mr. Seymour.

Record Funding and Expansion

The Government has allocated Pharmac its largest-ever budget of $6.294 billion over four years, including a $604 million increase to boost its buying power and expand access to medicines. The funding has enabled Pharmac to negotiate better deals and secure more treatment options for New Zealanders.

In the first half of the 2024 financial year alone, Pharmac funded 34 new medicines, surpassing the 28 new medicines funded in the 2023/2024 financial year. These newly funded medicines include Pembrolizumab (Keytruda) and Cetuximab (Erbitux), vital treatments for cancer patients.

Additionally, Continuous Glucose Monitors (CGMs) have been funded since August 2024, benefiting nearly 12,295 individuals with type 1 diabetes, improving their quality of life and diabetes management.

Enhanced Access to Medical Devices

Pharmac also increased its expenditure on medical devices for hospitals, raising the contracted spending to $640 million, nearly $100 million more than the previous year. Significant investments include $50 million in national contracts for essential medical equipment such as surgical implants, anaesthetic machines, and sterilisation systems.

Streamlined Processes and Faster Decision-Making

Pharmac has made significant strides in reducing the time required for decision-making processes, particularly for the Named Patient Pharmaceutical Assessment (NPPA). The NPPA process assesses funding applications for individual patients requiring treatments not currently listed in the Pharmaceutical Schedule.

In 2024, Pharmac exceeded its target of completing 50% of NPPA decisions within 10 working days every month. By October, 93% of NPPA applications were resolved within this timeframe, showcasing the organization’s improved efficiency.

Furthermore, changes were implemented to allow parallel assessments for all medicines, enabling Pharmac to evaluate funding applications concurrently with Medsafe’s regulatory approval process. This innovation accelerates the availability of medicines for patients.

Public Engagement and New Governance

Pharmac now has its own dedicated minister, reinforcing its role in New Zealand’s healthcare system. In his 2023 letter of expectations, Minister Seymour emphasized the importance of ensuring that patients, their families, and caregivers can participate in decision-making processes regarding medicines.

“Our goal is to build a world-class health system that provides access to world-class medicines,” stated Mr. Seymour.

A Brighter Future for Health in New Zealand

As part of this vision, Pharmac’s enhanced funding and operational improvements mark a transformative period for the organization. By prioritizing patients, streamlining processes, and investing in new technologies and treatments, New Zealand is making significant strides toward achieving equitable and high-quality healthcare for all.