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Consultation outcome: Proposed update to the 2023 statutory scheme to control the costs of branded health service medicines

Department Of Health

March 2
15:06 2023

Proposed changes to the statutory scheme to control the costs of branded health service medicines: final impact assessment

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Detail of outcome

This document analyses the responses to the consultation and sets out the governments response to the issues raised.

The government has decided to increase the payment percentage in the statutory scheme to 27.5% in 2023. The amendments to the 2018 regulations will be set out in the Branded Health Service Medicines (Costs) (Amendment) Regulations 2023 and will come into force on 1 April 2023.

Original consultation

Summary

DHSC is seeking views on a proposed update to the payment percentage for the statutory scheme for branded medicine pricing, particularly from the pharmaceutical industry and NHS patients.

This consultation ran from
to

Consultation description

The statutory scheme is set out in legislation in The Branded Health Service Medicines (Costs) Regulations 2018 (the regulations). It is one of 2 schemes, alongside the 2019 voluntary scheme for branded medicines pricing and access (VPAS), that control the prices of branded medicines to the NHS.

In scope for this consultation is the statutory scheme payment percentage for 2023, and whether this should be amended. The current statutory scheme payment percentage for 2023 was set following a consultation launched in February 2022. It was calculated before the availability of Q1 to Q3 2022 data, which now shows higher than originally forecast growth in measured sales in 2022 and a subsequent increase in the VPAS payment percentage for 2023.

We therefore consider that the statutory scheme payment percentage for 2023 should be revised to respond to this higher growth.

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