Overview
The Drug Tariff arrangements are different in Scotland from elsewhere in the UK. You may commonly hear reference to 'Category M' in the pharmacy press — Part 7 of the Scottish Drug Tariff is broadly the Scottish equivalent of this mechanism, but with differences to suit Scotland's agreed Tariff arrangements.
Part 7 is used to set the reimbursement prices of around 850 commonly prescribed medicines. It is the principal price adjustment mechanism to ensure delivery of the retained margin guaranteed as part of the pharmacy funding. As prices have to be set in advance, estimated volumes are used which may differ from actual volumes.
The scheme is closely monitored by CPS and the Scottish Government to ensure it operates correctly and to identify anomalies. Regular feedback is provided to ISD, who manage the Drug Tariff in Scotland and set prices on behalf of Scottish Government. Prescriptions with Part 7 items are paid at the published Part 7 price — brand or manufacturer endorsements are ignored.
Pricing Mechanisms
Part 7 and Non-Part 7 Medicines
How Part 7 Prices Are Set
Uses information gathered from manufacturers on volumes and prices of products sold
Combined with information from National Services Scotland on dispensing volumes
Prices are set annually in advance — estimated volumes are used which may differ from actual volumes
CPS and Scottish Government monitor the scheme closely and provide regular feedback to ISD
Shortages
Shortages & Adjusted Prices
From time to time, due to many factors, supply issues can arise for Part 7 medicines whereby they are unavailable at the Drug Tariff price.
CPS receives reports from contractors by telephone or through the shortage reporter on the website and enters into discussions with National Services Scotland. NSS may agree to a price adjustment — meaning the Drug Tariff price would be changed (likely increased).
Clawback Arrangements
Generic, Proprietary & Zero Discount
The full list of Zero Discount medicines can be found in Annex A of Part 1 of the Drug Tariff. Contractors should check this list when sourcing Part 7 items to understand which lines are subject to clawback and which are protected.