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PJ Online homeThe Pharmaceutical Journal
Vol 276 No 7398 p495
29 April 2006

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Zero-discount criteria


Zero-discount rules change on 1 May

New criteria for the exemption of products from the Drug Tariff discount clawback for England and Wales come into effect on 1 May.

New products will only be added to the zero-discount list if they meet at least one of four new criteria and the Pharmaceutical Services Negotiating Committee asks for them to be included.

The criteria are:

· Schedule 2 or 3 Controlled Drugs

· Hazchem, cytotoxic or cytostatic products

· Require cold-chain storage

· Neither manufacturer, AAH nor Unichem offer a discount, fewer than 500,000 units are dispensed each year and average net ingredient cost per prescription is over £50

In addition, later in the year, probably September, any current zero-discount products that fail to meet one of the new criteria will be removed from the list. At the same time, the discount scale will be reduced to make the change cost-neutral.

Once all products that fail to qualify under the new rules have been removed from the list, zero-discount endorsements on prescriptions dispensed by pharmacy contractors will become unnecessary, except where products have been obtained from specials manufacturers. The endorsement will change from ZD to DNG — discount not given.

This is the first change to the remuneration system arising from last year’s consultation on simplifying the reimbursement system (PJ, 17 September 2005, p329).

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