Introduction to The Pharmaceutical Management Agency (PHARMAC)

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16 Nov 2023

New Zealand funds their medicine through PHARMAC, a crown entity that determines and negotiates which essential medicine will be funded with their limited budget. The budget, given by the NZ government, was 71 million for 2022 and 120 million for 2023. PHARMAC has a committee called the Pharmacology and Therapeutics Advisory Committee (PTAC) that will choose which medicine to fund based on the demand, cost-effectiveness of the medicine and other factors. The PTAC will also take into account the quality and length of lives would be with or without the medicine. Currently, they fund over 1,300 different chemicals in 3,300 different presentations. People can put in applications to request a medicine to be funded in NZ – medicine would ideally present a clear benefit for New Zealanders with a deal with the medicine supplier to be approved by PTAC.

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Key issues

HEALTH SERVICES AND SYSTEMS

Covering developments in the provision, funding and organisation of health care services.

EQUITY

Exploring the impacts of the health system on minorities within the population, notably including Māori, Pacifica, Asians and LGBTQI.

DRUGS, DEVICE AND DIAGNOSTICS

Covering prescription medicines and medical devices.

PUBLIC HEALTH

Focusing on efforts to promote health and prevent disease through social and economic interventions.

DIGITAL HEALTH

Exploring the potential digital transformation to provide a more connected and accessible health system.

TE TIRITI

Monitoring how the health reforms and the performance of the health sector uphold Te Tiriti obligations.