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How does the operation of PHARMAC's 'Community Exceptional ...

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In summary, <strong>the</strong> data suggests that PHARMAC enjoys internationally<br />

recognised success at managing <strong>the</strong> needs <strong>of</strong> <strong>the</strong> wider population (substantive<br />

opportunities). There is considerable debate about <strong>the</strong> fairness and accuracy <strong>of</strong><br />

<strong>the</strong> system used by PHARMAC to decide on costs and benefits. This system<br />

cannot guarantee fairness <strong>of</strong> decisions for small numbers <strong>of</strong> people whose<br />

pharmaceutical needs have a potential to exceed New Zealand’s budget for<br />

medicines.<br />

Test-Question 4<br />

“Is this distribution based on information available to decision makers<br />

about <strong>the</strong> capability <strong>of</strong> this person to do things he/she has reason to<br />

value?”<br />

This test-question asks if PHARMAC’s decision makers know <strong>the</strong> capabilities <strong>of</strong><br />

<strong>the</strong> applicants and what <strong>the</strong>y have good reason to value in <strong>the</strong>ir lives. This<br />

question centres on <strong>the</strong> value <strong>of</strong> capabilities and <strong>the</strong> consequences on <strong>the</strong> lives<br />

<strong>of</strong> <strong>the</strong> people making claims on <strong>the</strong> pharmaceutical budget. Unlike Rawls, Sen<br />

contends that good health is an underlying liberty which is essential for <strong>the</strong><br />

enjoyment <strong>of</strong> all capabilities. Consequently, Sen presents us with two<br />

questions. Firstly, do <strong>the</strong> decision makers know if <strong>the</strong> distribution will add to or<br />

subtract from <strong>the</strong> person’s capability? Secondly do <strong>the</strong> decision makers know<br />

about <strong>the</strong> consequences on <strong>the</strong> lives <strong>of</strong> claimants requiring <strong>the</strong> distribution?<br />

It should be noted that Sen’s question <strong>does</strong> not ask decision makers which set<br />

<strong>of</strong> capabilities should be granted or provided for, or which values <strong>the</strong>ir decisions<br />

should develop capability for. Ra<strong>the</strong>r Sen’s question asks decision makers do<br />

<strong>the</strong>y have information about which set <strong>of</strong> capabilities <strong>the</strong> claimants feel are<br />

desirable and <strong>the</strong> consequences <strong>of</strong> <strong>the</strong> decisions on <strong>the</strong> person or <strong>the</strong>ir life.<br />

Sen asserts that without this information, distributive justice cannot be assured.<br />

In examining this test-question, I will discuss PHARMAC’s first purpose, to<br />

meet <strong>the</strong> pharmaceutical needs <strong>of</strong> <strong>the</strong> wider population. Secondly, I will<br />

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