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PHARMAC Budget Underspending a Crying Shame
12 November 2006

PHARMAC’s announcement this week of a $19.4 million budget under spend for 2006 has elicited cries of disbelief and anger from MPs, doctors and breast cancer groups alike. This continues a five year trend of budgetary under spending by PHARMAC that National MP Jackie Blue estimates now totals $73 million.

The Breast Cancer Aotearoa Coalition (BCAC) was outraged by the result which PHARMAC‘s Acting Chief Executive Matthew Brougham described as ‘excellent’.

‘Almost $20 million of taxpayers’ money is sitting in the bank while women are dying for lack of drugs,’ said BCAC Chair, Libby Burgess. ‘What does that say about PHARMAC? PHARMAC have said that if they spend money on Herceptin, other people will miss out. In light of this under spending, the overused “not enough money” argument ceases to hold water as does the “if we give you this drug, others will suffer” line. This surplus could go a long way towards funding Herceptin for women with early stage HER2 positive breast cancer.’ 

New Zealand spends only $195 per person per year on pharmaceuticals while Australia spends $420. ‘A New Zealander will receive only 45% of the pharmaceutical care an Australian will,’ said Ms Burgess. ’This announcement from PHARMAC suggests we may be getting even less! What we have here in New Zealand is rationing of health care. It is simply unbelievable that the Acting CEO of PHARMAC can call that ‘excellent’ when people are crying out for medicines. It’s enough to make you weep.’

Australian Medical Oncologist Nicole McCarthy, in Auckland this weekend for a breast health conference, said it was time New Zealand caught up with the rest of the developed world. ‘People in New Zealand are missing out on too many medicines,’ said Ms McCarthy. ‘Such reported under spending should not be a source of pride – it’s a crying shame.’

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