Retained Margin and Category M Drug Tariff

Explanation of the importance of Category M in the community pharmacy sector, specifically focusing on its role within the Drug Tariff and Community Pharmacy Contractual Framework (CPCF) in England. Category M serves as a key mechanism for setting reimbursement prices for generic medicines, influencing the retained margin, which represents a portion of the funding for pharmacies. Both sources highlight that this system is monitored by Community Pharmacy England and the Department of Health and Social Care (DHSC) and adjusted quarterly based on market data to ensure a target margin is met. The texts also touch upon challenges related to product availability at Category M prices and the impact of branded prescribing on the generic market and pharmacy funding.