The shift to 12-month prescriptions was announced in Budget 2025, taking effect in February 2026. This change allows prescriptions for up to 12 months for patients with stable, long-term conditions, improving access, convenience, and reducing pressure on general practice. However, the policy had negative funding consequences for community pharmacy, including
reduced dispensing revenue and additional administrative tasks.
Guild actions
PGNZ worked closely with senior officials to ensure community pharmacy was not financially disadvantaged. This included
detailed analysis on the financial impacts of the 12‑month prescribing model and escalation through an Official Information Act request and complaint to the Ombudsman.
Throughout this process, PGNZ raised concerns with Health New Zealand outside of the Integrated Community Pharmacy Services Agreement (ICPSA) national annual agreement review, demonstrating that pharmacies could not absorb the funding gap without compromising service or sustainability. Engagement with the Minister of Health ultimately secured a commitment to funding changes.
Health New Zealand agreement
In early November 2025, senior Health New Zealand officials agreed to funding adjustments fully mitigating the financial impact of
12-month prescriptions. Pharmacies will be funded as if prescriptions were still dispensed under three-month pricing terms, ensuring financial security. Additional dispensing from this policy will not be funded by existing community pharmacy funding streams.
The agreement recognises the essential role of community pharmacy and strengthens collaboration between PGNZ
and Health New Zealand. Implementation of the IT and payment systems will follow in consultation with PGNZ.
Benefits for pharmacies and patients
- Financial stability
Pharmacies can continue dispensing under the 12-month model without loss of income - Long-term support
Future additional dispensing will not be funded from existing funding streams - Operational certainty
Pharmacies can confidently plan staffing and workflow - Improved access
Eligible patients avoid extra GP visits for repeat prescriptions - Better collaboration
The agreement strengthens PGNZ-Health New Zealand relationships and ensures pharmacy concerns are heard
PGNZ will continue to monitor implementation and represent member interests.
For member resources and updates on 12-month prescriptions, visit 12-month-prescriptions
