Pharmac and Cannabis: Why It's Still Not Funded
Last reviewed: · Reviewed by the weed.nz editorial team · Information & education, not medical advice · 18+
One fact shapes the whole experience of being a medical cannabis patient in New Zealand: it's not funded by Pharmac. While most prescription medicines are subsidised, cannabis patients pay full price out of pocket. This explainer covers why — and what the gap means.
Information and education, not medical or financial advice. 18+.
How Pharmac funding normally works
Pharmac (the Pharmaceutical Management Agency) decides which medicines the public health system subsidises, within a fixed budget. For a medicine to be funded, it typically needs:
- To be a registered medicine (or assessed through the relevant pathway), with quality, safety and efficacy data behind it.
- Evidence of clinical benefit strong enough to justify funding over competing priorities.
- To represent good value against everything else Pharmac could spend the same money on.
This is a deliberately tough, evidence-driven process designed to get the most health from a limited budget. Plenty of medicines aren't funded, or wait years.
Why cannabis falls outside it
Several factors combine:
- Most cannabis products aren't conventionally registered medicines. New Zealand's Medicinal Cannabis Scheme allows products that meet a minimum quality standard to be prescribed — but meeting that manufacturing/quality standard is not the same as the full registration and clinical-trial evidence base Pharmac usually requires for funding. (See our piece on how cannabis is tested for quality.)
- The clinical evidence is uneven. For some uses (certain seizure disorders, some chemotherapy nausea, spasticity) the evidence is reasonably strong; for many common reasons people seek cannabis — anxiety, general pain, sleep — the trial evidence is thinner or mixed. That makes the value case Pharmac needs harder to build.
- Value for money. Even where there's benefit, Pharmac weighs cost against alternatives across the whole health system.
The result: a product can be legally prescribable yet completely unfunded. The notable exception is Epidyolex (a CBD medicine for certain severe epilepsies), which is a registered medicine and has a funding pathway — illustrating that registration is the route to funding, and most cannabis products haven't taken it.
What the gap means for patients
- Full out-of-pocket cost — often $100–$300+ per month once consults and product are counted. (See our cost breakdown.)
- An equity problem. Cost locks out people on lower incomes, and other barriers compound it — the Drug Foundation and patient advocates have repeatedly flagged that the scheme's costs fall hardest on those who can least afford them, including disproportionately on Māori. (See our piece on accessibility and equity.)
- Pressure to seek cheaper, illegal supply — which is exactly the harm a well-functioning scheme should prevent.
Could that change?
Possibly, but not quickly. For broader funding to happen, the most likely path is more products achieving full registration backed by stronger clinical-trial evidence, then making a competitive value case to Pharmac. Advocacy continues, and the patient numbers keep growing, which sustains the pressure — but funding decisions are evidence- and budget-bound, so change is gradual rather than guaranteed.
Frequently asked questions
Why isn't medical cannabis subsidised when it's legal to prescribe? Because being legally prescribable (meeting the scheme's quality standard) isn't the same as being a fully registered, Pharmac-funded medicine. Most products haven't met that higher bar.
Is any cannabis medicine funded? Epidyolex (CBD for certain severe epilepsies) is a registered medicine with a funding pathway. It's the exception that shows the rule.
How much do patients pay? Typically $100–$300+ a month once consultations and product are included — entirely out of pocket.
Will it ever be funded? Possibly, if more products gain full registration with stronger evidence and make a competitive value case. It's a slow, evidence-driven process.
Sources
- Pharmac — how medicines are funded; medicinal cannabis (accessed 2026-06-15)
- Ministry of Health — Medicinal Cannabis Scheme and minimum quality standard (accessed 2026-06-15)
- Medsafe — registered medicines, including Epidyolex (accessed 2026-06-15)
- New Zealand Drug Foundation — access, equity and funding commentary (accessed 2026-06-15)
Information and education, not medical or financial advice. 18+.
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