Dispensing practices are reminded that they cannot benefit from the discount not deducted status now to be applied to concession prices in England and Wales, following an update to the community pharmacy contract.

The move to apply DND status to concessions from April 2023 only applies to pharmacies and despite this classification, dispensing practices will continue to pay clawback on these items at the usual rate.

It is estimated that currently around 170 concessions are published each month affecting the English and Welsh tariff. As suppliers make related changes to their pricelists, this could cost each dispensing practice around £40,000 a year in lost profits.

In another change to the concession price system, products granted a concession price after the 23rd of the month, will see that concessionary price rolled over to the following month.  It is thought that this may well have a positive effect on dispensing practice reimbursement.

The DHSC has also announced plans to base the reimbursement prices of generic medicines in category A on market sales and volumes data, effective from the summer. Category A drugs are based on the average of the price calculated for the pack size listed in the Drug Tariff weighted by the following four manufacturers and suppliers; A A H Pharmaceuticals Ltd, Alliance Healthcare (Distribution) Ltd, Teva UK Ltd and Accord Healthcare Ltd on or before the 8th of the month being reimbursed.