There are calls for the Government to prioritise those who need financial support when it comes to medicines.

A new report analysing Pharmac questions whether the Government needs to subsidise medicine for everyone.

New Zealand Initiative senior researcher Dr Bryce Wilkinson told Mike Hosking Phramac deserve credit for flattening prices, showing for the most part the model woks.

"And also credit to the industry for producing such a valuable range of products for the world."

Mr Wilkinson says many people can afford the drugs they need, and if they covered their own cost, it would enable more drugs to be subsidised.

He says following the pandemic, money is scarcer than ever, and the Government needs to change its focus.