Retrospective top-up payments

Published on: 5th April 2024 | Updated on: 5th April 2024

In March 2024, it was announced that from April 2024 a retrospective top-up payment system for price concession lines will be implemented. This is an outcome from the Price Concession Review, which was agreed as part of the 2022/23 and 2023/24 funding settlement for Community Pharmacy. This was a major review of price concession systems, conducted in collaboration between Community Pharmacy England and the Department of Health and Social Care (DHSC).

Other major outcomes from the review of price concession procedures were as follows:

  • All products granted a concessionary price would be classified as ‘discount not deducted’ lines for the month(s) in which they are granted a concession (implemented from April 2023); and
  • There would be a process to roll over certain concessionary prices to the following months (implemented from May 2023).

Top up payments – how it works

Top up payments will be made for those concession lines where data subsequently identifies that the original concession prices granted were inappropriately low. If the Margin Survey of Independent Pharmacies indicates that there was a significant underpayment of a concessionary price, compared to the average purchase price paid by pharmacies for that month, this will trigger an automatic top-up payment.

The top-up payments will be applied automatically to all pharmacies who have dispensed the affected items.

These top-up payments will be paid on a quarterly basis, for products granted a concession price three quarters before. A new section will be added to the Drug Tariff, Part VIIIE. Items which are eligible for top-up payments will be listed in this part.

The first retrospective top-up payments will apply from April 2024, to reflect activity during April to September 2023 (i.e. the first two quarters of 2023/24 will be covered by a single payment).

Payments for 2023/24 Q3 and beyond will appear in line with the payment timetable outlined below.

Items dispensed in the following months Top-up payment month
April – June January in the following year
July – September April in the following year
October – December July in the following year
January – March October in same year

 

Top up payments announced in

April 2024

Month applicable Product for top-up Top-up amount
April 2023 Pramipexole 180mcg tablets (30 pack) £5.33
July 2023 Itraconazole 100mg capsules (15 pack) £6.73
July 2023 Pantoprazole 40mg gastro-resistant tablets (28 pack) £2.60
July 2023 Paracetamol 500mg effervescent tablets (100 pack) £3.93
August 2023 Atomoxetine 10mg capsules (28 pack) £10.39
August 2023 Atomoxetine 25mg capsules (28 pack) £7.74
September 2023 Docusate 50mg/5ml oral solution sugar free (300ml pack) £2.84

Additional Information

Price concession hub 

Price concession archive

How the price concession system operates

Price concession webinar now available on demand

Medicines Supply and Price Concessions Resources

Medicines Supply Factsheet (July 2022)

For more information on this topic please email comms.team@cpe.org.uk

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