Labour has pledged an extra $1 billion over the next four years for Pharmac so it can fund additional medicines. 

Labour says it has increased funding for Pharmac, the government agency that decides which medicines to fund, by 62 per cent since 2017, increasing from $870 million to $1.2b a year. 

The new funding would see an extra $181m a year for ongoing costs over the next four years starting from 2024/25, with another $50m in the first two years specifically for new medicines rising to $100m in the final two years. 

Labour leader Chris Hipkins said this would “turbocharge” Pharmac providing more cancer treatment along with for other critical illnesses. 

Pharmac funding has been a highly politicised issue in recent years, with both National and Act highly critical of the agency. 

Hipkins said under the previous National government, from 2008 until 2017, Pharmac funding increased 25 per cent including three years when it was frozen. 

“Our funding boosts have meant Pharmac has made available 75 new listings and widened access to 137 treatments,” Hipkins said. 

“It’s estimated that over 118,000 New Zealanders have benefited from the funding decisions implemented in 2021/2022 alone.” 

Hipkins also referenced the party’s policy to remove the $5 prescription payment for all New Zealanders, helping 2 million people in July/August alone. 

“We will also continue to support Pharmac to independently ensure that all medicines are considered, not just those that appeal to certain politicians,” Hipkins said. 

Labour’s increased Pharmac spending: 

• More modern cancer medicines
• Blood cancer medicines like venetoclax for chronic lymphocytic leukaemia
• Medicines for rare diseases, like Spinraza and Trikafta for spinal muscular atrophy and cystic fibrosis respectively
• Preventive medicines like PreP for HIV and Bexsero vaccine against meningitis
• Medicines for multiple sclerosis, inflammatory bowel disease and hepatitis C
• Modern medicine for people who have chronic conditions such as heart disease, diabetes, asthma, mental health or contraception

“We want to give Pharmac the funding it needs to strike the best deals it can on behalf of all New Zealanders, not only those conditions singled out by National,” Hipkins said. 

“National’s plan punishes those who rely on free prescriptions and seriously undermines Pharmac’s ability to work to strike the best deal for New Zealanders. 

“No one chooses to be unwell, and medicine can be expensive, that’s why Labour will continue to grow the amount and types of medicines New Zealanders can access.” 

National’s Pharmac policy is to fund 13 new cancer medicines at a cost of $280m over four years. It says this will be funded by reinstating $5 prescriptions except for superannuitants and those on low-incomes.