Advocates for people with type 1 diabetes say broader Pharmac funding will be a gamechanger for the nearly 18,000 people living with the disease.
The government's drug-buying agency will begin funding continuous blood glucose monitors (CGMs) and a selection of wearable insulin pumps in October.
In the first year of funding 12,000 people will receive the monitors, which communicate with a reader or cellphone to allow constant blood glucose readings without having to draw blood.
An additional 5200 people will also become eligible to receive insulin pumps over the same period.
At present, 4800 people are funded to wear the pumps, which allow a constant flow of insulin instead of multiple daily injections of the drug.
Dr Jo McClintock, chairperson of the National Clinical Network for Children and Young People with Diabetes, said the news would bring "happy tears" from type 1 diabetics and their whānau.
"Our pēpi, tamariki, and rangatahi with type 1 diabetes are unlikely to see anything more important than this decision, in their lifetime. The impact of having this technology available for the parents and loved ones of young people with type 1 diabetes is going to be immeasurable."
The head of Diabetes New Zealand, Heather Verry, said the changes would be a lifeline to better health and greater freedom for people living with the life-threatening illness.
"Free access to these devices will not only be life-changing for thousands of New Zealanders living with type 1 diabetes, it will also be lifesaving."
Verry said it had taken too long for funding legislation to reflect the benefits the technology could provide for people living with the condition.
"We have lagged behind the rest of the world in having equitable access to this critical technology. Today we have caught up."
Pharmac's manager of pharmaceutical funding, Adrienne Martin, thanked the diabetes community for their patience, as the agency worked their way through the commercial process to secure funding for the devices.
"It's been a long wait for people with type 1 diabetes to reach this point. We know this decision will make a real difference to thousands of people and their whānau who face the daily challenges of managing their type 1 diabetes healthcare, and we are so pleased to provide funding for these life-changing products."
Not every device funded
Not everyone will be satisfied with the changes. In April, more than 7000 people signed a petition urging the Pharmac to reconsider the decision to stop funding the Medtronic brand of insulin pumps currently worn by nearly 2000 people.
Martin said Pharmac would not be including the Medtronic devices in the funded options, because doing so would mean restarting the commercial tender process.
"We have been told by our clinical advisors that the options we have chosen will give people with type 1 diabetes choice and flexibility - and that they will work for most people. Restarting the process would have had a significant impact on people who would benefit from having these devices available now."
Martin said the agency would help Medtronic users transition to the new devices.
"We have made some changes to the decision to make it easier for people using the Medtronic pump to change to one of the funded options. I appreciate this will be difficult news for the people who wanted us to add the Medtronic devices, and hope that the changes we have made will make a change easier for them."
Of the five types of CGMs included in the funding, three would link to insulin pumps to create a system that could automatically adjust to changes the wearer's blood glucose levels.
Karen Reed, who lived with type 1 diabetes, said she was thrilled to know that in one month's time she would be able to access a fully funded, automated insulin delivery system.
"I've lived with type 1 diabetes for over 40 years. I've watched my family overseas using these devices, so I'm so excited that I will have access to this life-changing technology too."
