New arrangements for the setting of Drug Tariff Category A reimbursement prices will be introduced by the Department of Health and Social Care (DHSC) from April 2024.

The changes form part of a series of drug reimbursement reforms proposed by DHSC following a public consultation in 2019.

DHSC’s decision, determined by Ministers, is primarily focussed on an ambition to equalise access to margin on Category A medicines.

From 1st April 2024, Category A prices will begin transitioning to the new arrangements:

How will it be implemented?

The transition to the new arrangements will take place over six financial quarters from April 2024 until July 2025. Each quarter the prices will be more dependent on the new methodology, with a variable weighting of the old and new methods being applied as set out in the table below:

Accordingly, two calculations will be made, one in reliance on the old formula and one in reliance on the new methodology, and the reimbursement price applied will be a weighted average of those two price-setting calculations.

Supporting Pharmacists and Dispensing Doctors

At Accord, we’re dedicated to providing value beyond the pill. In April, we’ll be introducing an overview of Category A, highlighting its significance alongside Category M. We’ll then release quarterly updates that will delve deeper and provide further analysis, just like our renowned Category M analysis, equipping you with the insights you need to support your business.

Date of prep: March 2024 UK-05926

Changes to Category A price setting process – Community Pharmacy England (cpe.org.uk)
Date of access: March 2024