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

several Medicaid State funded public health insurance schemes in the USA and,
as previously mentioned, in some Veterans Administration Hospitals.
In August 2011, PHARMAC’s Chief Executive Officer, Matthew Brougham took
up a position as head of PHARMAC’s equivalent in Canada, the Canadian
Agency for Drugs and Technologies in Health (CADTH). It is probable that
Brougham’s expertise in managing down New Zealand’s medicines bill will be
utilised in his new position at CADTH.
Undoubtedly PhRMA’s greater concern about New Zealand’s entry into the TPPA
is less about the rules of engagement in negotiating drug contracts (of which
New Zealand must be a tiny market compared to other OECD countries) and
more about limiting a contagion of PHARMAC’s very effective price reducing
practices. Such practices are obviously attractive to the Canadian government
and must be alluring to other Pacific Partners and OECD governments struggling
with rising medicine costs.
Both New Zealand’s major political parties, National and the Labour Opposition
have declared their support for PHARMAC and have given assurances that the
agency will not be compromised (Morning Report, 2011) in its ability to control
pharmaceutical prices as a result of any TPPA. No final decisions have been
made at the time of writing.
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