July 2018 Category M prices

July 2018 Category M prices

June 29, 2018

Category M reimbursement prices for July 2018 can be found here.

These show a net overall reduction compared to April 2018 Category M of around £15m per month for medicines that were in both quarters. This equates to a reduction in Average Item Value (AIV) of approximately 17 pence per item on all items.

Category M reimbursement prices are based on manufacturers’ prices gathered by the Department of Health and Social Care (DHSC) under a voluntary agreement known as Scheme M. The movement in July is driven by an overall reduction in manufacturers’ selling out prices in the reference period (January to March 2018), mostly associated with price concession lines, and not due to planned management of retained margin. Since we were made aware of the new prices we have been in constant contact with DHSC to validate their analysis.

DHSC and PSNC are working on the margins survey for 2017/18. This has to be done carefully to ensure that the full effect of price concessions is accurately captured and is required in order to make a decision on setting future reimbursement prices. At this point it is unclear what will happen to the August Drug Tariff.

Update: Category M reimbursement prices to increase from August 2018

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