October 2018 Category M prices

October 2018 Category M prices

September 24, 2018

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

These show a net overall reduction compared to August 2018 Category M of around £7m per month for medicines that were in both quarters. This equates to a reduction in Average Item Value (AIV) of approximately 8p 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). The movement in October is driven by an overall reduction in manufacturers’ selling out prices in the reference period (April to June 2018), and not due to planned management of retained margin. Since we were made aware of the new prices we have been in contact with DHSC and validated the reasoning for the changes.

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.


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