What is the DH trying to achieve with its statutory scheme proposals?
Department of Health officials have launched a consultation aimed at revamping the statutory scheme for branded medicines not covered by the Pharmaceutical Price Regulation Scheme (PPRS).
The DH’s proposed changes are aimed at bringing the two schemes closer together. The ministry argues that the statutory scheme produces lower savings than the PPRS and is less transparent in terms of maximum pricing, which is said to make enforcement difficult.
The proposed statutory scheme is based on the Health Service Medical Supplies (Costs) Act 2017. The Act was passed by Parliament after proposals published in 2015 were found to present legal difficulties.
Proposals include a new payment system in which manufacturers may be liable to pay a rebate to the DH in the same was as under the PPRS. There are also proposed changes to the rules on maximum prices and information requirements.
Further information
DH: Open consultation: statutory scheme to control cost of branded medicines
DH: Proposed changes to the statutory scheme to control the cost of branded health service medicines