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PJ Online homeThe Pharmaceutical Journal
Vol 274 No 7347 p510
30 April 2005

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Changes to generics reimbursement in Scotland

Changes to the reimbursement of drugs in part 7 of the Scottish Drug Tariff were announced this week.

In an NHS circular, the Scottish Executive Health Department explained that the changes are the first stage in a process of transferring money from reimbursement to remuneration. The overall effect on individual contractors will be cost neutral.

A total of £30m will be taken out of part 7 prices in 2005–06 by applying a revised clawback of 27.75 per cent (the existing 13.25 per cent plus 14.5 per cent). However, contractors will receive a “transitional balancing reimbursement payment” calculated as 14.5 per cent of a contractor’s gross part 7 payments.

The balancing payment will be made each month from April (paid in June) until the arrangements cease in March 2006. It will be paid through the payment adjustment system and met from health boards’ unified budgets.

The tariff prices set in April will remain in place for three months and will only be adjusted if a patent is lost or to address a change in policy. “The new part 7 tariff is intended to deliver a fair aggregate return to contractors and to remove the reimbursement focus away from short-term pricing on individual items,” the SEHD said.

Frank Owens, Scottish Pharmaceutical General Council chairman, commented that the arrangements essentially mirror those in England and Wales.

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