Sections relating to the control of the cost of health service medicines Amendments to the NHS Act 2006
The Act amends the NHS Act 2006 to clarify that the Secretary of State can also make a statutory scheme for the purpose of requiring any manufacturer or supplier to whom the scheme applies to pay to the Secretary of State an amount calculated by reference to sales or estimated sales of any health service medicines.
	Additionally, the Act amends the NHS Act 2006 to clarify that the powers relating to voluntary schemes are exercisable in relation to voluntary schemes whereby scheme members make payments based on their sales of health service medicines. The Act adds a new power to the NHS Act 2006 to enable the Secretary of State to require a voluntary scheme member to pay a sum due under that scheme. If the scheme member fails to pay, the existing provisions (in section 265 of the NHS Act 2006) would allow recovery through the courts. The amendment also makes clear that payments owed whilst the manufacturer or supplier was a member of the voluntary scheme may be recovered notwithstanding that a member of a voluntary scheme moves to the statutory scheme or vice versa.
	Currently, provisions in the NHS Act 2006 state that regulations or directions made under sections 262 or 263 for the purposes of limiting prices of, or profits accrued from health service medicines cannot apply to members of a voluntary scheme. This is the case, even if the regulations or directions are directed at health service medicines manufactured or supplied by that scheme member which are not covered by the voluntary scheme. For example, the current PPRS covers branded health service medicines. However, a member of the PPRS may also manufacture unbranded health service medicines. The current provisions in the NHS Act 2006 prevent the Secretary of State from making regulations or directions to limit prices or profits that apply to a member of the PPRS, even if the regulations or directions are directed at the member’s unbranded medicines. The Act therefore amends the provisions of the NHS Act 2006, so that the Secretary of State can make directions or regulations under section 262 or 263 to limit the prices of, or profits relating to, health service medicines of a manufacturer or supplier in the voluntary scheme, as long as their health service medicine to which the directions or regulations relate is not covered by the voluntary scheme. The Secretary of State will continue to be able to exercise their power in relation to a supplier not in the voluntary scheme even where the health service medicine has already been subject to controls under the voluntary scheme by virtue of the manufacturer of the health service medicine being a member of the voluntary scheme.