A longer-term medicines funding path
Increase medicines’ share of the health budget along a seven-year path, using forecast growth in existing health funding.
Our assessment & details
Our assessment
AnalysisStrengths
- A published funding path could help Pharmac plan purchases beyond a single Budget, with medicines still subject to its assessment process.Evidence 1Evidence 2
Trade-offs & risks
- Reserving more forecast health-budget growth for medicines leaves less of that growth for other health priorities.Evidence 1Evidence 2
Open questions
- The 2025-based projections need updating, including what happens if forecast health-budget growth or cross-party support does not materialise.Evidence 1Evidence 2Evidence 3
Party proposal
ACT proposes increasing the medicines share of the health budget by one percentage point each year, aiming to match Australia by 2033. It would set future Pharmac increases in advance and seek other parties’ support for the same path.
- Who it covers
- Patients who could benefit from additional publicly funded medicines. Pharmac would retain its assessment role; this is not a guarantee of a particular treatment.
- Timing
- The full paper’s allocation path begins in 2027/28 and reaches a 12% medicines share in 2033/34.
- Cost & funding stated by the party
- The paper projects medicines budgets rising from $2.0–2.2bn to $5.4–6.1bn, reallocating expected health-budget growth rather than increasing total health spending. Its 2025 Treasury model inputs predate PREFU; annual allocation increases are not a net policy cost to add together.