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ICPSA Variations Offer 2021

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ICPSA - Variation 3, 2021: offer for contract-holders 

APAS funding increase

APAS payment estimation calculator

Generic version Letter of Offer 


Local services funding

Immunisation funding

The 2021 National Annual Agreement Review of the Integrated Community Pharmacy Services Agreement (ICPSA) concluded in August 2021, with DHBs and community pharmacy provider representatives agreeing Variation 3 on the existing contract to enable contract-holders to receive increased funding from 1 October 2021.

Generic version: Variation 3 to ICPSA [200kb] 

Variation 3 took effect on 1 October 2021.

Variation 3 was offered to all contract-holders from August 2021, and took effect on 1 October 2021.

More information about the variation is available below.

ICPSA - Variation 3, 2021: offer for contract holders

Total Additional Professional Advisory Services (APAS) funding forecast of $48.6 million.

  • $32.8 million of projected APAS 2020-21 funding PLUS
  • $15.8 million of new APAS funding for 2021-22.

Increase of influenza and MMR immunisation fees to $21.23 (excluding GST).

Other clauses have been amended, as set out in the Letter of Offer and FAQs.

APAS funding increase

DHBs have agreed to a cost pressure recognition of 2.78 per cent, forecast to be around $15.8 million which will be applied to the Schedule 2 APAS payment from 1 October 2021. This is on top of $22.8 million expected underlying growth in 2021/22.  

Community pharmacists provide professional advice every day that is often not linked to a dispensing, and the APAS payment acknowledges this ongoing contribution. The equity adjustor applied to the APAS funding recognises the needs of Māori and Pacific people, and Community Service Card and High Use Health Card holders.

Total APAS funding has been consolidated into a single pool of $48.6 million and will be calculated by market share. Calculation of the APAS payment has been simplified to give pharmacies greater certainty about how much they will be paid each month.

APAS Payment Estimation Calculator


APAS Payment Estimation Calculator [Excel spreadsheet 23kb]

This calculator is provided so that community pharmacy service providers can estimate the APAS payment they will receive each quarter. Any figures given by this calculator are an estimate only. The actual APAS payment received by a provider can vary for a number of reasons, including changes in the provider’s market share, changes in the provider’s patient mix, or due to providers entering or exiting the market. For full details on how APAS payments are calculated, please see Schedule 2 of the Integrated Community Pharmacy Services Agreement (ICPSA).

Neither TAS, nor any DHB, make any guarantee in relation to the calculator, and do not accept any responsibility or liability for any loss or damage that might arise (directly or indirectly) from use of the calculator or the information in it.

Generic Version: ICPSA Variation 3 Letter of Offer

Generic version: ICPSA Variation 3 Letter of Offer [285kb] 

This is a generic version of the Letter of Offer for ICPSA Variation 3, taking effect from 1 October 2021. 

August 2021


ICPSA Variation 3 FAQs

FAQs: ICPSA Variation 3, October 2021 [236kb] 

Frequently asked questions about ICPSA Variation 3

August 2021


Local services funding

DHBs will continue to fund $4.1 million for locally commissioned services annually.

Immunisation funding increases

DHBs have increased funding for influenza and MMR vaccinations by 2.78 per cent to $21.23 (excluding GST) backdated to 1 July 2021. MMR vaccinations will be part of the core contract (Schedule 3A).

Last updated: 1/10/21