£12bn NHS bill cap for drug industry

  • The drug industry has made a deal with the department of health to keep the bill for more expensive branded medicines flat for two years.

    The government has agreed a deal with the pharmaceutical industry to cap the NHS drugs bill at about £12bn, with companies paying the excess if doctors prescribe medicine that goes over that limit. Pills

    Negotiations have been taking place for over 18 months and the Department of Health have announced a deal that will keep the bill for more expensive branded medicines flat for two years, and then will allow a gradual rise of less than 2% for the next three, reports the Guardian.

    Total cost of medicines will be around £14bn as the deal does not include the cost of generics, which are drugs that are out of patent and made very cheaply.

    This means that patients will not be denied drugs that have a high price tag, as the industry as a whole will refund the NHS for any spending over the cap.

    "This agreement ensures NHS patients will receive the best and most advanced medicines in the world while managing the cost," said the health secretary, Jeremy Hunt. "UK pharmaceutical companies have responded to the challenges we face as a country, both in terms of the increased demand for medicines and pressure on public spending. I hope in return we have given them the certainty and backing they need to flourish as a sector both here and in the global market."

    The National Institute for Health and Care Excellence will continue to recommend what the NHS should pay for any drug it approves, however the negotiation on price will be between the company and the government,

    The Association of the British Pharmaceutical Industry president Deepak Khanna said that the negotions had been "the most complex negotiations we have ever had with government and it should not be underestimated how difficult this will be for the industry. The negotiations were built on a myth that medicines are expensive in the UK, which is not true. The UK already spends amongst the lowest on medicines as a percentage of GDP and has some of the lowest prices in Europe, yet UK patients still do not always get access to the most innovative medicines. In 2011, the overall spend on medicines represented less than 10% of total UK-wide NHS expenditure. We need to continue to invest in the industry if we want to make sure that patients benefit from innovation. The commercial environment in the UK has an impact on its attractiveness for research and development investment and it's too early to say what impact this settlement will have on industry investment."

    Chief executive Stephen Whitehead said: "Whilst the deal allows us to move forward and focus on the key issue of ensuring NHS patients get access to the medicines they need, the government needs to recognise that medicines are an investment in patient care and not just a cost to be managed. We have agreed to play our part, recognising the financial challenges facing the NHS. We now need the government and the NHS to respond positively to this unique opportunity to demonstrate their active commitment to improving patients' access to the latest medicines. We have five years to fix the access problem so that NHS patients get the best quality healthcare they deserve and to address the long history of low patient usage of innovative medicines in the UK."

    What do you think of this? Tweet us your comments @suppsolutions

    Image source: http://www.sxc.hu/photo/1111309

Related articles

  • Read More

    THE STATUS OF THE SOCIAL CARE SECTOR REQUIRES IMPROVEMENTs

    It was also found that the social care sector has the following characteristics:Social care seems like an adjunct to the NHS instead of being an important service in its own right. While the...

  • Read More

    Scottish Welfare Fund grants see a 13% rise in applications

    Data from the Scottish Government has shown that the number of applications to councils under the Scottish Welfare Fund has increased by 13% in just the last year, reports The Courier.Over the most...

  • Read More

    Local welfare assistance funds held back by councils

    The Centre for Responsible Credit using Freedom of Information requests carried out a study which found that 127 local authorities spent 52.8% of their £148.5m sharing of the local welfare...

  • Read More

    Landlord scheme has saved the NHS thousands of pounds

    The groups - Oldham Council, Oldham Clinical Commissioning Group (CCG) and Oldham Housing Investment Partnership - consist of 10 social landlords who co-invested in the ‘Warm Homes Oldham'...

  • Read More

    Calls for NHS funding

    Stevens also called for an end to the ‘boom-bust' approach. Stevens told the Financial Times he hoped for more annual funding in addition to the £2bn lifeline that the Chancellor, George Osborne,...

  • Read More

    New Fundraising Campaign Launched by Hospital Charity

    The campaign encourages its supporters to partake in its ‘Every £1 Counts' fundraiser by making a donation and sharing a ‘pound selfie' on Facebook and Twitter throughout January.The charity are...

  • Read More

    Home care sector facing crisis due to workers’ wages

    A study by contractor Mears and the Local Government Information Unit have reported that councils should ensure they pay providers to enable them to pay ‘at least' minimum wage salaries.Liberal...

  • Read More

    Supported housing service for women and their children has received funding for community garden

    Endeavour Housing Associaiton's Rainham House temporary accommodation service has been awarded funding for their Roots and Shoots garden project. Working in partnership with community allotment...

  • Read More

    Social landlords urged to make do without grants

    Speaking to Inside Housing at the Conservative Party conference this week, Mr Lewis said: "If housing associations want to survive without government funding, that's a good thing."He said it would...

  • Read More

    Supporting People budget cut by £10m by the Welsh government

    A draft budget shows the government announcing plans to cut the budget for Supporting People from £134.4m in 2014/15 to £124.4m in 2015/16 which is a drop of 7.4%, reports Inside Housing.Despite...

Exempt Accommodation, Welfare Reform and Vulnerable Tenants Everything was extremely useful. I like to hear about the updated case law and how things are changing. Also like to hear other delegates examples and the responses to their difficulties. Support solutions are excellent. K.B- Jephson Housing Association

 

Briefing Signup

 
Quick Contact

Quick contact

Close

Contact us

T 0333 332 1991 (Local rate)

E info@supportsolutions.co.uk