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The Drug Tariff

Maxwell Noble made this Freedom of Information request to Department of Health and Social Care

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Dear Department of Health,
Can you explain to me what are the criteria for re-classification of a product from Category C to Category A and how is the Category A price calculated. I am aware that if a second source of the product enters the market this could be a factor but there has been a recent example of of a product undergoing this re-classification but the Basic Cost of this drug remained the same. Surely a second source would lower the Basic Cost?
Yours faithfully,
Maxwell Noble

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Our ref: DE-1105028 

   

Dear Mr Noble,  
   
Thank you for your correspondence of 1 November about the drug tariff.  I
have been asked to reply.   
  

Your correspondence has been passed to policy colleagues in the Medicines,
Pharmacy and Industry Group, and they will respond to you directly.  

 

I hope this reply is helpful. 

  
Yours sincerely,  
   
Michael James  
Ministerial Correspondence and Public Enquiries 
Department of Health  

  

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MPIG Support,

1 Attachment

Dear Mr Noble,

 

Thank you for your query in regards to the reclassification of a product
from Category C to Category A. I have been asked to respond.

 

The Drug Tariff contains the Secretary of State’s determinations outlining
what the NHS will pay pharmacy contractors for providing pharmaceutical
services, including reimbursement for the cost of drugs and appliances
dispensed.  These determinations are made in accordance with the NHS
(Pharmaceutical and Local Pharmaceutical Services) Regulations 2013 and
after consultation with the Pharmaceutical Services Negotiating Committee
(PSNC), the representative body of pharmacy contractors.

 

Where appropriate generic products in Part VIIIA of the Tariff are placed
in a category.  The categories are A, C and M. The reimbursement price is
established differently depending on the category in which the product is
placed. Category C lists products, which are not readily available as a
generic. The reimbursement price of those products is based on a
particular proprietary product, manufacturer or supplier. The
reimbursement prices of products in Category A represent weighted average
of a basket of prices from suppliers (AAH, Alliance Healthcare, Teva and
Actavis). For a product to be considered for addition to Category A it has
to achieve a weighting of four where AAH and Alliance have a weighting of
two each and Teva and Actavis have a weighting  of one each.

 

It is important to bear in mind that due processes must be followed before
any amendments are made to the determinations published in the Drug
Tariff, especially the requirement of consultation with the PSNC. For more
information please access the following link -
[1]https://www.nhsbsa.nhs.uk/pharmacies-gp-...

 

I hope this is helpful.

 

Kind regards,

Jess Soar

 

 

[2]DH.JPG Jessica Soar

MPD Parliamentary & Public Accountability

2E14 Quarry House

Quarry Hill, Leeds, LS2 7UE

 

 

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