Forgive me if you've had a chance to look up the Act and accompanying regulations (Branded Health Service Medicines (Costs) Regulations 2018) by now, but in brief, they give the DHSC three broad and wide ranging new powers:
1. The ability to take action in the in relation to excessive price increases on unbranded generics [Govt stated in the debates through both Houses that the power would only be used for excessive prices where there is no competition]
2. Mandates all parts of the supply chain to keep information on COGs, prices charged, and supply to SoS when requested [and interestingly, information shared between all four devolved nations, despite health being a devolved power]
3. Modify the statutory PPRS to introduce a rebate model akin to the voluntary PPRS
Technically, with these regulations now in place, there is no reason a company should be able to achieve an excessive price. Generics are controlled via the Drug Tariff, NICE force a low price for most branded medicines [compared to international norms], and the new powers can control generic prices where there is no competition. The loophole for companies in the PPRS debranding a medicine and increasing the price has also closed in these regulations.
However, in practice, there are still some questionable practices. See this in the Times today on liothyronine:
https://www.thetimes.co.uk/article/...onine-after-cost-increases-by-5-600-k3mn07trz
Why? The NHS and DHSC teams don't have the resource and expertise to spot every single questionable case, and if prices are being pushed up a moderate amount each year, can the Govt class this as "excessive"? Regulations have not been in place even a year yet, so perhaps too early to judge, but I think until they have more rigorous IT systems in place that allow Govt to easily track prices across the whole market and easily spot questionable trends, not much will change.
Thoughts? Addresses any of your concerns? Credit to them for at least recognising the issue (thanks to
The Times) and trying to do something.
Edit: Worth noting this was all done off the top of my head, and I have a bad memory at the best of times. Some of the particulars may therefore be wrong!