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Revised Discounting Arrangements

From January 2024 prescriptions, the discount deduction applied to pharmacy contractors monthly total of reimbursement prices will be transitioning to new arrangements (For detail of the transition click HERE). Under the new arrangements, which will be fully in place by April 2025, there will be three product groups each with their own fixed deduction rates which will be applied to monthly reimbursement prices of the products in that group, as set out in the table below:

Discount deduction rates

Definition and products covered by the definition
Discount Deduction rate
Discount rate 1:
Products listed in Part I, Category A and M of the Drug Tariff (excludes products granted price concessions for the given dispensing month)
18.48% (Subject to change)
Discount rate 2:
Products listed in Part II or Part III of the Drug Tariff
This includes:
·          Appliances listed in Part III e.g. dressings, elastic hosiery
·          Incontinence Appliances listed in Part III
·          Chemical Reagents listed in Part II
The Appliances deduction rates applies whether the appliance is prescribed by brand name or generic name.
10.39% (Subject to change)
Discount rate 3:
Products not covered by Appliances and Generics definition above. This includes:
·          Products listed in Part I, Category C of the Drug Tariff
·          Products prescribed by brand name, including branded generics
·          Products in Category A and M granted concessionary prices for a given dispensing month
·          Products NOT listed in Part I of the Drug Tariff i.e. non-Part I
5.27% (Subject to change)

To note, those products which are listed on the “Zero Discount” list, are exempt from the revised discounting arrangements and will remain Zero Discount.

All non-zero discount products, granted a Concessionary price in the prescription submission month of January 2024 will have Discount Rate 3 applied. Click HERE to see the current Concessionary price list (3 previous months of archived Concessionary prices are also available).