About PHARMAC
Who we are and what we do
PHARMAC (the Pharmaceutical Management Agency) is the part of the 
New Zealand Medicines System that works to ensure New Zealanders have affordable access to medicines, and that they use those medicines optimally.
See our Introduction to PHARMAC (2 pages, 150 KB) Information Sheet for more details.
Improving access to medicines
Our central role is to manage the pharmaceutical budget on behalf of District Health Boards, and to decide which medicines are funded by the Government. The list of funded medicines is published in the Pharmaceutical Schedule.
We work out which medicines provide the best health results and the best value, and then work with pharmaceutical companies to make these medicines available to New Zealanders. This means that the Government fully or partially pays the cost of most prescription medicines for New Zealanders.
The use of a budget is what sets PHARMAC apart from other international funding agencies. District Health Boards continue to hold the funding for prescription medicines.
You can use our interactive flow chart to see how PHARMAC makes its funding decisions.
See our Inequalities in Access to Medicines (2 pages, 412 KB) Information Sheet for more details.
Promoting the Optimal Use of Medicines
We also play an important role in helping New Zealanders understand how to make the optimal use of their medicines. Our Access and Optimal Use team runs patient information campaigns and other promotions to encourage people to use medicines well, or to improve their health through better and healthier lifestyles.
See our Optimal Use of Medicines (2 pages, 220 KB)Information Sheet for more details.
Assisting DHBs
Our expertise helps District Health Boards manage their expenditure on pharmaceuticals and some other products used in hospitals. We also use our expertise in assessing new medicines to help DHBs decide which new hospital medicines are cost-effective.
We also work alongside DHBs on Access and Optimal Use campaigns like One Heart Many Lives.
Legal purpose
PHARMAC's legal purpose is:
"to secure for people in need of pharmaceuticals, the best health outcomes that are reasonably achievable from pharmaceutical treatment and from within the amount of funding provided."
New Zealand Public Health and Disability Act 2000
History
Initially set up in 1993, PHARMAC is now a stand-alone Crown entity, accountable to the Minister of Health.
You can view important events in PHARMAC's history here, and see our Our History (2 pages, 419 KB) Information Sheet for more details.
Page updated on 11 May 2009
Linked documents
Introduction to PHARMAC (2 pages, 150 KB)
PHARMAC Information sheet Introduction to PHARMAC What is PHARMAC? PHARMAC is the New Zealand Government agency that decides, on behalf of District Health Boards, which medicines are subsidised. PHARMAC, a Crown Entity, was created in 1993 to ensure that New…
Inequalities in Access to Medicines (2 pages, 412 KB)
PHARMAC Information sheet Inequalities in access to medicines Access to medicine in New Zealand The Pharmaceutical Schedule provides funded access to medicines for all New Zealanders. However, we know that there are groups of people who access medicines more readily…
Optimal Use of Medicines (2 pages, 220 KB)
PHARMAC Information sheet Optimal Use of Medicines Making the best use of medicines The debate about access to medicines is often focused around new medicines. But getting the best out of what’s already in the medicines “toolbox” is just as…
Our History (2 pages, 419 KB)
PHARMAC Information sheet PHARMAC’s history During the 1980s medicines prices were increasing at a faster rate than other healthcare spending, and were one of the fastest growing items of Government expenditure. Growth of more than 20% each year meant medicine…
