Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what recent assessment he has made of the adequacy of the (a) drug prices, (b) appliance prices and (c) fees paid to pharmacy contractors in the NHS Drug Tariff.

The Department undertakes a quarterly assessment of the adequacy of drug prices paid to community pharmacies through the medicine margin survey. The survey samples independent pharmacy contractors’ sales invoices for the medicines they dispense, and compares the amount paid with the amount reimbursed by the National Health Service. This has found that more than the amount agreed as part of the Community Pharmacy Contractual Framework has been delivered in total across the previous four financial years. Suppliers of appliances can optionally apply for an annual price increase on the NHS Drug Tariff. Fees in the tariff are routinely reviewed and updated when appropriate.

Medicine costs are considered as part of ongoing broader assessments of the financial health of the sector. However, if the selling price of a product goes above the reimbursement price in a given month, pharmacy contractors can request an increase to the reimbursement price from the Department via Community Pharmacy England. Where an increase is granted, this new price is known as a concessionary price. This ensures that that the reimbursement prices set are reflective of real time market selling prices, and means that pharmacy contractors are paid fairly for the medicines they dispense.