Dispensing fee to be charged by persons licensed in terms of Section 22C(1)(a)

The Minister of Health has, on the recommendation of the Pricing Committee in terms of section 22G of the Medicine and Related Substances Act, 1965 (Act No. 101 of 1965) as amended, made the regulations in the schedule.

New draft dispensing fee for GP’s

The Minister of Health on Friday 19 May 2017 published a draft dispensing fee for general practitioners and other persons licensed to dispense in terms of Section 22C of Act 101 of 1965 as amended. Interested persons now have three months to submit comments, after which a final Regulation will be published and a new fee can be charged.

The draft dispensing fee is as follows:

  • Where the single exit price of a medicine or scheduled substance is less than R120.00, the dispensing fee must not exceed 30% of the single exit price [the current fee is 30% up to R111.99).
  • Where the single exit price of a medicine or scheduled substance is equal to or greater than R120.00, the dispensing fee must not exceed R36.00 [the current cap is  R33.60.

The fee must be calculated exclusive of VAT; thus the single exit price + 30% = total exclusive of VAT. VAT is then added to this total. If the single exit price, for instance is R130.00, one will add R36.00 which equals R166.00R. VAT is then added (R23.24) and the patient is charged R189.24.

The minister also published draft dispensing fees for pharmacists.

For a medicine with the same price as the example above, a pharmacist may charge 33% (R42.90) + R24.30 for a total price of R197.20. When VAT is added the price for the patient is R224.80 which is R35.56 more expensive than the price a dispensing doctor can charge.

Download the Government Gazette Notice

Annual dispensing license fee payment(s) due before the 28th of February 2017

Your annual license fee payment of R200.00 per premise, is due before the 28 of February 2017.

Focus on Health can assist you with your payment(s) to the Department of Health. Contact us on 012 653 2394, or send an email to elmarie@mras.co.za

Annual dispensing license fee payment(s) due before the 28th of February 2017

Your annual license fee payment of R200.00 per premise, is due before the 28 of February 2017.

Focus on Health can assist you with your payment(s) to the Department of Health. Contact us on 012 653 2394, or send an email to elmarie@mras.co.za

DISPENSING FEE INCREASE 2016

As from 24 June 2016 the dispensing fee was increased as follows:

  • Where the single exit price of a medicine or scheduled substance is less than R112.00, the dispensing fee must not exceed 30% of the single exit price;
  • Where the single exit price of a medicine or scheduled substance is equal to or greater than R112.00, the dispensing fee must not exceed R33.60.

The fee must be calculated exclusive of VAT; thus the single exit price + 30% = total exclusive of VAT. VAT is then added to this total. If the single exit price, for instance is R130.00, one will add R33.60 which equals R163.60. VAT is then added (R22.90) and the patient is charged R186.50.

Please note that your invoice to the patient must reflect both the single exit price as well as the dispensing fee charged. Also note that the published new dispensing fee is the maximum fee allowed, and that you can charge less than this fee, but not more.

Surgicals (plaster, needles and stitches) have NO single exit price, nor are these scheduled substances. Therefore these have no set dispensing fee.

Download the Government Gazette Notice

DRAFT DISPENSING FEE TO BE CHARGED BY PERSONS LICENSED IN TERMS OF SECTION 22C(1)(a)

DR A MOTSOALEDI, The Minister of Health have determined, on the recommendation of the Pricing Committee, in terms of Section 22G (2) (b) of the Medicines and Related Substances Act. 1965 (Act No. 101 of 1965) as amended, made the regulations in the schedule.

Interested persons are requested to submit comments on the proposed regulations within 3 months of publication of this notice to the Director -General. Health (Attention to the Director: Pharmaceutical Economic Evaluations Directorate Room S2610, South Tower Civitas Building Thabo Sehume 8 Bloed Streets Pretoria 0001

SCHEDULE

Definitions

  • In these regulations any word or expression to which a meaning has been assigned in the Act shall have such meaning and, unless the context indicates otherwise the Regulations means the Regulations Relating to the Transparent Pricing System for Medicines and Scheduled Substances published under Government Notice No. R1102 of November 2005 as amended

Substitution of Regulation 12

  • The following regulation is hereby substituted for Regulation 12 of the Regulations.

    “12. The appropriate dispensing fee as contemplated in section 22G (2) (b)of the Act to be charged by persons licensed in terms of section 22C (1) (a) of the Act must be calculated, exclusive of VAT, as follows.

    • Where the single exit price of a medicine or scheduled substance is less than one hundred and twelve rand (R112.00), the dispensing fee must not exceed 30% of the single exit price in respect of that medicine or scheduled substance.
    • Where the single exit price of a medicine or scheduled substance is equal to or greater than one hundred and twelve rand (R112.00), the dispensing fee must not exceed thirty three rand and sixty cents (R33.60) in respect
      of that medicine or scheduled substance;
  • The provisions of sub -regulation (2) must be reviewed annually by the Minister after taking into account-
    • the need to ensure the availability and affordability of quality medicines and scheduled substances in the Republic;
    • annual inflation rates published periodically by Statistics South Africa;
    • information supplied by persons licensed to dispense in terms of section 22C (1)(a) in accordance with guidelines determined by the Director- General from time to time by Notice in the Gazette, and
    • any other information the Minister may deem necessary to consider.
  • Persons Licensed to dispensing in terms of section 22C (1) (a) must-
    • by means of a clearly displayed notice in the dispensing practice, inform members of the public of the maximum fee structure used by such dispensing practice to determine the dispensing fee; and
    • provide an invoice in respect of each medicine that clearly indicates the-
      dispensing fee charged: and
      the single exit price.

D ‘ A MOTSOALEDI, MP
MINISTER OF HEALTH

The new dispensing fee for persons licensed to dispense has been gazetted

The appropriate dispensing fee as contemplated in Section 22G of the Act to be charged by persons licensed in terms of Section 22C (1) (a) of the Act must be calculated, exclusive of VAT, as follows:

  • Where the single exit price of a medicine or scheduled substance is less than one hundred and eight rand (R108.00), the dispensing fee must not exceed 30% of the single exit price in respect of that medicine or scheduled substance;
  • Where the single exit price of a medicine or scheduled substance is equal to or greater than one hundred and eight rand (R108.00), the dispensing fee must not exceed thirty two rand and forty cents (R32.40) in respect of that medicine or scheduled substance;

MEDICINES AND RELATED SUBSTANCES ACT, 1965: INFORMATION TO BE SUPPLIED BY PERSONS LICENSED TO DISPENSE IN TERMS OF SECTION 22C (1)(a)

The Minister of Health, on the recommendation of the Pricing Committee, in terms of section 22G of the Medicine and Related Substances Act, 1965 (Act No. 101 of 1965), requests information to be supplied by persons licensed to dispense in terms of Section 22C (1) (a) of the Act, for the review of the annual dispensing fee for 2015.

The Pricing Committee intends to collect data from the relevant stakeholders to inform a structured review of the dispensing fee for 2015. Persons licensed to dispense in terms of Section 22C (1) (a) of the Act are requested to provide proposals for a methodology for a systematic review which would consider the following factors:

  • Expenses incurred in running the dispensing portion of a dispensing practice
  • Income generated from dispensing medicines in a practice
  • Feasibility and practical considerations of carrying out a systematic review

Parties are further requested to comment on the availability of data on costs and income apportioned to the dispensing portion of a practice namely-

  • Inputs and Variables – Expenses:
    • Personnel – that is the person who is licensed under Section 22C (1)(a) of the Act.
    • Overheads – e.g. rental, telephones, standard equipment costs etc.
    • Preparing and dispensing prescriptions – e.g. dispensary packaging materials, etc.
  • Inputs and Variables – Income:
    • Items dispensed for which a fee can be levied
    • Dispensing fee claimed/charged per item
  • Data capturing:
    • Computer systems which are used to capture dispensing fee data
  • Separate costs that are specific for:
    • Dispensing only
    • General practice only
    • Shared costs for dispensing and general practice
  • Geographical size (m2) of the following areas:
    • Dispensing Area
    • General area
    • Shared areas for dispensing and general practice
    • Total area

Interested persons are invited to submit any substantiated comments and representations on the Minister’s intended review, on a compact disc and a hard copy within three months from the date of publication of this notice to:

The Director-General: National Department of Health
For Attention: Director (Pharmaceutical Economic Evaluations)
Room 419 South Tower
Civitas Building
Corner Thabo Sehume & Bloed Streets
PRETORIA, 0001 

For any further enquires please contact Mr S Mngadi
Telephone: 012 395 8185; e-mail: mndadshealth.gov.za

Dr A MOTSOALEDI, MP
MINISTER OF HEALTH

Dispensing Courses

Dispensing courses will be hosted in Durban (18 – 20 March), Centurion (8-10 April) and Cape Town (6-8 May)