Coventry LPC

Drug Tariff & Price Concessions

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Price Concessions

PSNC Briefing

Price Concessions Flow Chart

Price Concessions Webinar

Price Concessions Slide Pack

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Current Price Concessions

Drug Tariff

Drug Tariff Online

Discount Deductions

NHS Prescription Services produces the Drug Tariff on a monthly basis on behalf of the Department of Health and Social Care. It’s supplied primarily to pharmacists and GP practices. Source: NHSBSA

DHSC could consider setting a price concession for products where they are available above the set Drug Tariff reimbursement price. Pharmacy contractors will be automatically reimbursed based on the set price rather than the Drug Tariff listed price.  Source: PSNC


Frequently Asked Questions and Additional Support


  • What is a price concession?
  • Why does the price concession for a drug not reflect the price I’m having to purchase it at?
  • How long do price concessions last?
  • Why aren’t price concessions granted on the first day of each month?
  • Why do contractors need to report generic shortages each month?
  • Can I refuse to dispense a generic drug that I cannot obtain at or below Drug Tariff price?
  • If a medicine is granted a price concession, are all strengths of the product covered?
  • More FAQs about Price Concessions
  • ‘Discount is Not Deducted’ DND Announcements
What is a price concession?

What is a price concession?
• A price concession is a temporary adjustment to the reimbursement price for a generic drug, above the Drug Tariff-listed price for that month
• DHSC sets the price concession after consultation with PSNC
• Contractors are automatically reimbursed the concessionary price
• No additional endorsements are required
• The price concession is only applicable to prescriptions dispensed and submitted for
payment for the month in which it was granted

source: PSNC

Why does the price concession for a drug not reflect the price I’m having to purchase it at?

PSNC and DHSC negotiate price concessions and try to agree to a price that both parties feel is reflective of market availability. Whilst this may not be the price that you have purchased at, PSNC only agrees when we believe that price is one that most contractors can obtain the drug for.

However, there are also times where an agreement cannot be reached and DHSC decides to impose a price concession instead. The decision to grant a concession ultimately lies with DHSC so they have the power to impose a price if they feel unable to agree to PSNC’s requested prices.

source: PSNC

How long do price concessions last?

When a price concessions is granted, it is valid until the end of the month in which it was granted. PSNC needs to apply/re-apply for concessions on a monthly basis. If there is an on-going supply problem, it is possible that a new concession will be granted by the Department of Health and Social Care the following month; however, this is not guaranteed.

source: PSNC

Why aren’t price concessions granted on the first day of each month?

If there is a supply issue, PSNC needs to make a fresh concession application at the start of each month. The Department of Health and Social Care then take time to undertake checks and make a decision. In some cases, there is a need for negotiation between PSNC and the Department of Health and Social Care on an individual product’s circumstances; this can take time.

PSNC would like to see changes to the arrangements that would allow contractors to have certainty over what they will be reimbursed, much earlier in the month, a point which we have raised with the Department of Health and Social Care.

source: PSNC

Why do contractors need to report generic shortages each month?

Price concessions only apply for the month in which they are granted. Because the market fluctuates on a regular basis in terms of stock levels and prices it would not be appropriate to roll the price over from one month to the next.

PSNC regularly monitors the market through contractor reports and communications with wholesalers. Where appropriate, we apply to the Department of Health and Social Care for price concessions on products which aren’t available at Drug Tariff price.  As stock levels and prices can vary across the country, we rely on contractor reports to help feed into our market surveillance and our discussions with the Department of Health and Social Care. It is also important to note that the Department may not act on something unless contractors have reported it.

source: PSNC

Can I refuse to dispense a generic drug that I cannot obtain at or below Drug Tariff price?

No; it is against a pharmacy’s NHS Terms of Service to refuse to dispense a drug on cost grounds. If a generic drug is unavailable at the Drug Tariff price, pharmacy teams may wish to contact the prescriber to request a prescription for a particular brand or make of drug to ensure reimbursement is based on the item dispensed.

source: PSNC

If a medicine is granted a price concession, are all strengths of the product covered?

No, concessions are granted to specific strengths of a product so contractors must check the latest list so they know which strengths have been granted a concession.

source: PSNC

‘Discount is Not Deducted’ DND Announcements

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