A new Category will be introduced to Part VIIIA of the Drug Tariff by Department of Health and Social Care (DHSC) from March 2026. The change forms part of the actions set out in the Community Pharmacy Contractual Framework (CPCF) settlement with the aim of improving the distribution of medicine margin. It was also part of a series of drug reimbursement reforms proposed by DHSC following a public consultation in 2019.
The CPCF and drug reimbursement reforms set out changes to reimbursement price-setting arrangements for Category C products with multiple suppliers. Currently, products listed in Category C are reimbursed based on the list price of a particular branded product or supplier, as it is typically the only supplier available. Where a product is available from multiple suppliers, DHSC believes that Category C reimbursement prices are not reflective of what community pharmacy teams are supplying. These products will begin to move to the new category, Category H, in a phased approach.
The reimbursement for products listed in Category H will be set using information from suppliers gathered under The Health Service Products (Provision and Disclosure of Information) Regulations 2018.
Community Pharmacy England has objected to the introduction of the changes at this time because of the wider challenges pharmacies are currently facing and the risk that further changes could disrupt the already turbulent medicines supply chain.
We have ongoing and very serious concerns about the functioning of the medicines pricing and margin system and the impact this is having on the network, as pharmacies continue to struggle to operate with severe underfunding. We are continuing to press Government on this matter, and on the need to resolve these issues if it is to deliver on its commitment to a sustainable future for community pharmacy and assure ongoing safe and timely access to medicines for patients.
Notice of this change has been outlined on the NHSBSA website.