AQW 13747/22-27

Ms Paula Bradshaw
Alliance Party
South Belfast

Tabled Date: 24/06/2024
Answered On Date: 08/07/2024
Priority Written: No

Question:
To ask the Minister of Health for an update on changes to the drug tariff to ensure community pharmacists are not losing money on them.

Answer:

Following targeted consultation in March 2022, two changes to the Northern Ireland Drug Tariff (NIDT) are currently being implemented in a transitional manner over 18 months with updates as follows:

Discounting arrangements:

Implementation of the revised discounting arrangements began with the January 2024 prescription payment (made end February ’24). For the first three months of the transitional arrangements, £41,000 less was clawed back from contractors via the revised arrangements than would have been via legacy discount clawback arrangements.

Reimbursement of Category A generic medicines in Part 1 NIDT

The objective of this change is to ensure that reimbursement prices better reflect market prices. Part 1 of the NIDT is reflective of the English Drug Tariff and therefore from April 2024, NI are implementing the same transitional arrangements as imposed by DHSC in England.

The actual impact of both changes will be closely monitored during the transitional implementation period and consideration will be given to mitigate net material impacts if appropriate.

The financial impact on Community Pharmacy of any changes to the NIDT will be monitored via the results of the Northern Ireland Ongoing Margin Survey (OMS) which ensures a minimum threshold of retained purchase profit for community pharmacies.

In April 2024, Minister Swann agreed to increase this minimum threshold from £26.5m up to £31.5m along with a move towards new processes in 2024/25 to ensure more timely OMS result reporting.