Drug Tariff Category H Overview

Starting in March 2026, the Department of Health and Social Care will implement Category H into the official Drug Tariff to reform how certain medicines are reimbursed. This new classification targets products currently in Category C that are provided by multiple manufacturers, shifting away from prices based on a single brand's list price. Instead, reimbursement rates will be determined by actual market data collected from suppliers to better reflect true pharmacy costs. While the government intends to improve the distribution of medicine margins, representative bodies like Community Pharmacy England have expressed significant concern. They argue that these imposed changes could further strain pharmacy funding and potentially destabilize an already fragile medicine supply chain.