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Drug Tariff deduction scale updated for pharmacy

Generics deduction rate increases to 20% from April

March 30th 2023

Tagged: Pharmacy owners' news England Wales

By Charles Gladwin

The generic discount rate applied to pharmacy contractors for generic drugs will increase to 20% from April 1st, up from 17.52%. The deduction rates for Part IX (Appliances) at 9.85% and brands at 5% remain unchanged at this point, NHS Business Services Authority has announced.

The increase, which applies to Drug Tariff Part VIIIA Category A and Category M items, is part of the transition scheme under the Part V deduction scale arrangements introduced in October 2022.

In addition, from April 1st, “products granted a concessionary price will no longer be subjected to the branded discount deduction rate but will be classified as ‘Discount Not Deducted’ for the month(s) in which they are on concession.”