Cancer drugs promise: $604m extra for Pharmac

Health Minister Dr Shane Reti: "Increasing access to vital medicines for Kiwis is the right thing to do." Photo: RNZ

The coalition government has confirmed $604 million over four years in extra funding for Pharmac to cover "up to 54" new medicines including 26 cancer treatments.

Health Minister Dr Shane Reti said late this afternoon it will mean the government's drug-buying agency can fund all 13 cancer drugs promised at last year's election, or replacements that are "as good or better", and will benefit about 175,000 people in the first year.

Dr Reti said some of the treatments would be available from October or November, "with more phased in over the next year".

He and Associate Health Minister David Seymour made the widely expected announcement after this week's Cabinet meeting, with $604 million over four years the most likely of three options expected to be presented at that meeting.

The other options included directing Pharmac to fund the specific drugs National campaigned on, or setting up a separate agency to fund them - but both options could have compromised the independent processes Pharmac normally uses to buy medicines.

"This approach allows the government and Pharmac to act on updated clinical advice, funding new and more effective treatments which have superseded previous options," Seymour said.

Associate Health Minister David Seymour. Photo: RNZ

"For many New Zealanders, funding for pharmaceuticals is life or death, or the difference between a life of pain and suffering or living freely.

"It was a priority for this government to find the additional $1.8 billion to fix the fiscal cliff left by the previous government, and we're now providing a $604 million uplift to Pharmac to ensure more Kiwis can access life-changing medicines."

National had campaigned on funding the medicines, and the commitment was labelled a broken promise when the funding was not included in this year's Budget.

Finance Minister Nicola Willis subsequently said the funding would come from next year's Budget, including pointing to a pre-allocation for Te Whatu Ora/Health NZ.

In a statement this afternoon, Reti said the reason for expanding the funding was simple: "Increasing access to vital medicines for Kiwis is the right thing to do. We thank each and every New Zealander who has shared their health journey - cancer related or otherwise - with our government."

Reti said Health New Zealand would ensure Kiwis can readily access the new and widened medicines.

Seymour said today’s announcement is exactly what Kiwis want: public money supporting visible frontline services and healthcare for people in need.

“Expanding the package to reach around 175,000 people per year across a range of conditions in its first year is possible through the Pharmac model which gets the best value for New Zealanders, something that’s very important to me.

“This approach allows the government and Pharmac to act on updated clinical advice, funding new and more effective treatments which have superseded previous options."

Photo: Getty Images

Funding schedule

Source: NZ Govt

What will be funded

In total, Pharmac estimates the proposal will fund:

• 26 cancer treatments covering all cancer types originally listed plus other types not previously included (such as blood cancers).

• Up to seven of the original 13 cancer treatments proposed pre-election, with alternatives for the other treatments that are as or more effective than those originally listed.

• 28 other medicines that also add substantially to New Zealanders’ health and life outcomes, across a wide range of conditions which could include infections, respiratory conditions, osteoporosis, sexual health, dermatology, inflammatory conditions and mental health.