Category M clawbacks will see contractors hit by a reduction of 35p per item this month, the Pharmaceutical Services Negotiating Committee (PSNC) has confirmed.

PSNC director of pharmacy funding Mike Dent told The Pharmacist that the reduction of approximately 17p per item for July 2018 category M prices – announced on Friday – is in addition to an ongoing 12-month category M clawback that was put in place last year.

In August 2017, PSNC revealed that reimbursement prices had been reduced by £15m per month, leading to a reduction of 17-18p per item on drug tariff prices until August 2018.


Reduction in manufacturers’ prices


Mr Dent told The Pharmacist: ‘The change in category M reimbursement prices for July 2018 is driven by an overall reduction in manufacturers’ prices, mostly associated with price concessions lines and not due to planned management of retained margin.

‘PSNC is working with the DHSC on the 2017/18 margins survey to ensure that the full effect of price concessions is accurately captured.’

Mr Dent added that ‘it is unclear at this point what will happen to the August 2018 drug tariff’.


‘Over-delivery’ of the medicine margin


According to the NHS Business Authority (NHSBA), the Department of Health and Social Care (DHSC) – with PSNC’s approval – reduced the initial category M reimbursement prices last August ‘due to the results of the 2015/16 medicine margin survey and the provisional results of 2016/17’.

The NHSBA said that the results ‘indicate an over-delivery on the £800m per year medicine margin commitment for both 2015/16 and 2016/17’.