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July Category M strips 19p per item (av) from reimbursement

£49m/quarter removed

June 28th 2021

Tagged: DM Zone news

By Ailsa Colquhoun

The Department of Health and Social Care has released the July Category M adjustment.

According to PSNC, which negotiates Category M prices with the DHSC, the July Category M prices reflect a reduction in margin levels of approximately £34 million per quarter. The £15m per quarter uplift that has been in place for the last three quarters to mitigate against the impact of Brexit will also be removed from the July Drug Tariff.

As such the total quarterly impact on margin will be a £49m reduction, or approximately -19 pence per item on average. The underlying effect of market price movements in the reference period Jan – Mar 2021 will also be reflected in the July Drug Tariff.

In summary, there are now 660 products in Category M. In the adjustment:

  • 48 products are up in price, 31 by more than 20 per cent
  • 604 products are down in price, 118  by more than 20 per cent

DDA members can view the full spreadsheet, sorted by price, price history, price change, and percentage price change by visiting the member-only online library of Category M updates