Hi all, could someone fill me in on the differences between the new 2024 VPAG scheme and the 2019 VPAS?
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Hi Sarrah,
The 2024 Voluntary Scheme VPAG replaced the 2019 VPAS in January 2024 and will run until December 2028, aiming to save the NHS £14 billion over 5 years in medicine costs. It imposes a cap on annual sales of branded medicines to the NHS, with excess sales subject to a government levy. The growth limit for branded medicine sales will double from 2% in 2024 to 4% by 2027. Additionally, a new affordability mechanism was introduced under the new VPAG, which applies to older medicines, which will have to pay a top-up rate of up to 25% in addition to the older medicines base rate of 10%. The scheme covers various medical products but excludes unbranded generics and medicines for private use. A pathway guide will be released within the first year, detailing market routes and engagement mechanisms. Stay posted for more updates coming soon!
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The threshold for budget impact test will also increase from £20m under the VPAS to £40m under the VPAG