- Hon David Seymour
Associate Health Minister David Seymour has today announced more clear expectations for Pharmac to continue delivering the medicines and medical technology that Kiwis need, more efficiently.
"For many New Zealanders, funding for pharmaceuticals is life or death, or the difference between a life of pain and suffering or living freely. That's why it has been a focus of this Government," Mr Seymour says.
"My expectation is that Pharmac continues to deliver for Kiwis within its fixed budget. Pharmac will need to find efficiencies to make their budget go further, because that's what Kiwi patients and their families deserve."
The expectations for Pharmac for 2026/27 include:
- Ensuring assessment, procurement and exceptional circumstances processes continue to work for patients and support access to medicines.
- Strengthening how Pharmac considers the wider health, social and fiscal impacts of funding decisions.
- Continuing to reflect the voices of patients, carers and families in decision-making.
- Further improving the timeliness and transparency of medicine funding decisions, including introducing assessment timeframes targets, public reporting, and faster publication of decision records.
- Building on engagement with consumer groups, suppliers and other stakeholders to improve collaboration and planning to achieve the best results for Kiwi patients.
- Investing in data and digital infrastructure to enhance core functions, including the use of AI.
"Pharmac has gone for focussing solely on managing their fixed budget to an agency that seeks collaboration and advocates for further funding. I want to acknowledge Pharmac for the work they have done to respond to my previous Letters of Expectations," Mr Seymour says.
Pharmac achievements from previous letters of expectations:
- Changed their culture, by:
- Delivering a 12-month Reset Programme with input from the Consumer and Patient Working Group.
- Developing a new vision and strategic priorities following significant external and internal consultation.
- Investing in data and digital infrastructure, including beginning work to redevelop the aging Pharmaceutical Schedule.
- Built productive consumer and procurement partnerships by:
- Speeding up its processes, including completing a streamlined assessment pilot.
- Strengthening partnerships with key stakeholders, including establishing a new Medical Devices Supplier Reference Group.
- Taking part in the November 2024 consumer engagement workshops.
- Strengthening stakeholder engagement through a dedicated Consumer Engagement team.
- Expanding public consultation steps to include the annual tender process.
- Significantly improved access to medicines and medical technology by:
- Engaging with international experts on best practice for considering the societal impacts of funding medicines.
- Established the medical devices procurement arrangement with Health NZ.
"The Government's doing its part. Since this Government took over, we've allocated Pharmac its largest ever budget of $7.2 billion over four years," Mr Seymour says.
This includes a $54 million uplift over 4 years announced in Budget 2026 and a $604 million uplift over 4 years made in June 2024. It also includes the $1.77 billion investment made in Budget 2024 to address previous time limited funding
"Patients are reaping the benefits. With that money, Pharmac has made 135 decisions to fund or widen access to medicines, including decisions on 47 cancer medicines. Over 680,000 patients are expected to benefit in the first year of funding from these medicines," Mr Seymour says.
"The progress so far has been impressive, but there is more work to be done. Listening to the voices of patients and consumers will continue to be at the heart of Pharmac's work as it launches the next phase of its long-term improvement programme."
