Pharmac funding not cut

Amy Adams and National may have been a bit hasty in claiming that Pharmac funding had been cut.

Adams is still claiming this on RNZ this morning.

That seemed odd, but Grant Robertson has pointed out that it is inaccurate.

Pharmac: Budget 2018/19

PHARMAC is pleased that the Government has announced an uplift in PHARMAC’s funding.

The Combined Pharmaceutical Budget (CPB) will be increased to a record level of $985 million in 2018/19 – an increase of just under $114.2 million on the 2017/18 CPB level.

From 1 July 2018, PHARMAC will manage all public expenditure on medicines – whether used in the community or in hospital, and this means that all remaining DHB’s expenditure will be part of the CPB.

Due to the power of the PHARMAC model, this is likely to provide future savings of around $200 million over four years for Vote Health – achievable by applying the PHARMAC model to the full portfolio of medicines.

PHARMAC will continue to invest in new medicines and technology that best meet the health needs of New Zealanders.

PHARMAC has proven its ability to return savings for the health sector, while at the same time funding new treatments, as well as managing the growth in usage of existing funded treatments.

So the Pharmac budget has been increased, and ” the power of the PHARMAC model’ means that DPB spending on drugs could be reduced by $200m.

That’s if Donlad trump doesn’t force up the international price of drugs so that US drug companies can make even bigger profits.

8 Comments

  1. PDB

     /  May 18, 2018

  2. David

     /  May 18, 2018

    Robertson spent years saying National had cut health funding when they were increasing finding, situation normal and no doubt Adams like Robertson will find a clever metric.

    • Trevors_elbow

       /  May 18, 2018

      Exactly…. sauce for the goose etc

  3. Blazer

     /  May 18, 2018

    National lie in Govt,and now lie in…opposition….long may it..last.

  4. Zedd

     /  May 18, 2018

    maybe they can start funding Sativex & other Cannabinoid drugs now ?
    currently not funded, costs >$1000/month 😦

  5. Callum

     /  May 18, 2018

    That seems to read very poorly. How much funding is being taken from DHB’s to give to Pharmac who then have to supply the drugs the DHB’s previously bought themselves? The $985m CPB sounds like it will now include the DHB funding, so if more than $114m is cut from DHB’s then it is an overall cut (especially if cut by more than the $50m yearly projected savings).