Cancer drugs plan revealed: big boost for Pharmac
Friday, 21 June 2024
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The Government is expected to announce a record-breaking medicines boost of at least $600 million as a way of keeping National’s promise on cancer drugs, The Post understands.
The move would allow Pharmac to buy dozens of medications for other illnesses too, allowing the Government to expand access to cancer medicines while maintaining Pharmac’s independence.
The move looks set to boost Pharmac’s annual medicines budget by 10%, but will mean the cancer drugs funded may differ from the 13 treatments National campaigned on, given Pharmac will be the agency making the decisions.
Two separate sources, including a Government official, have leaked the details, though it is yet to be signed off by Cabinet.
That could happen as early as next week once final details are worked through.
The plan has been a focus for the Government since Budget day, which failed to provide any funding for the hugely anticipated National party policy, leading to a public outcry.
Bitterly disappointed cancer patients accused the Government of a broken promise. Some have been paying tens of thousands of dollars for cancer drugs that are available free across the Tasman.
The prime minister’s office would not confirm details on Thursday but said an announcement would be made shortly.
It’s understood the cost is yet to be settled, but will be upwards of $150 million each year over four years and will not be ring-fenced for cancer. This would mark the biggest investment in medicines New Zealand has ever seen outside annual budgets, sources said.
It’s expected Pharmac will be handed the money and will work down its drug funding wish list of 147 treatments until it reaches cancer drugs that are either the same or equivalent treatments to those that were on the list National announced during the election campaign.
However while Pharmac’s wish list is public — and includes everything from ketamine to condoms — the ranking is not, so it’s unclear exactly what will make the cut.
National’s list of cancer drugs has been called outdated by oncologists and failed to include blood cancer medicines.
In April, Pharmac told The Post’s The C-Word series that 43% of the drugs on its wish list were related to cancer. It’s been widely reported at least $490m per year would be needed to completely clear Pharmac’s list.
A spokesperson for Prime Minister Christopher Luxon said the Government has made clear its commitment to improving access to cancer treatments.
“National campaigned on adding 13 new treatments to narrow the gap between what is available for Kiwis and what can be accessed in Australia.
“As we have said, work is underway to fulfil that commitment and we hope to have more to say about that soon.
“However, no decisions have been made and a range of options are being considered.”
The Budget announcement saw an extra $1.77b allocated to Pharmac over the next four years, but both Pharmac and the Government accepted that would simply maintain access to existing medicines and continue to pay for Covid-19 vaccinations.
Health Minister Dr Shane Reti, the Minister responsible for Pharmac David Seymour, Pharmac, and the Cancer Control Agency all declined to comment on Wednesday.
Reti told a select committee under scrutiny this week that a Budget bid was written for the policy but wasn’t “quite ready” by May 30 due to financial and logistical barriers.
The following day, Seymour referred to the original policy as a National party 'problem' while under scrutiny at Health Select Committee, where he vowed to protect Pharmac's independent model.