Pharmac's NZD 1.69 billion medicines budget has funded 66 new medicines in what has been a record year, yet gaps still drive health insurance purchases.
New Zealand’s medicine-buying agency Pharmac managed a NZD 1.69 billion budget in 2024/25 and funded 66 new medicines, 33 for cancer and 33 for other conditions, in the largest investment programme in its history, according to a comprehensive new guide published by personal finance research website MoneyHub. However, the guide reveals that significant gaps remain between what Pharmac funds and what is available internationally, with unfunded cancer immunotherapies costing NZD 50,000 to NZD 100,000+ per year for patients paying privately.
MoneyHub’s analysis of Pharmac’s 2024/25 Annual Report shows that 4.182 million New Zealanders, essentially the entire population, received funded medicines, while total gross spending reached NZD 2.71 billion through commercial rebate arrangements that effectively doubled the Government’s buying power.
“Pharmac affects every New Zealander, every prescription, every hospital treatment, every vaccination, yet few people understand how the system actually works,” said Christopher Walsh, Founder of MoneyHub.
“The 2024/25 year saw 83 decisions compared to 28 the year before, but it took a NZD 604 million budget uplift to deliver it. Without increased Government investment, Pharmac’s annual output is typically 20 to 45 decisions.”
Walsh highlighted the connection between Pharmac and personal financial planning.
“New Zealanders often buy health insurance without fully understanding why they need it. The answer, in large part, is Pharmac. The public system provides excellent core coverage, but it has limits, and those limits are set by budget, not by what’s medically available. Understanding this gap is essential to deciding whether health insurance is right for you.”
More news here.
