Good News for ALL Practices Nexplanon now Attracts an Administration Fee

 UPDATE from Dispex 25th October 2024

By Dr Philip Koopowitz – Dispex & Hexagon6

Following clarification from NHSBSA, the reclassification of Nexplanon as “Attracts an Administration Fee”
only comes into force on 1st January 2025.I would like to apologise to anyone who I may have told that this
reclassification starts from 1st October 2024. I had clearly not read the small print which was in section 1,
above this new direction in section2.2.Citation, commencement, extent, application and interpretation 

  1. (3) Directions 2(2)(b) comes into force on 1st January 2025.

  Amendment of the Principal Directions  

  1.  (2) (b) in paragraph (4)— (i) after sub-paragraph (e), insert “(f) sub-dermal contraceptive implants”.

 

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Good News for ALL Practices Nexplanon now Attracts an Administration Fee

 

Original Post Published:  | Category: Profitability

By Dr Philip Koopowitz – Dispex & Hexagon6

The latest SFE (Statement of Financial Entitlements) (Amendment) (No.2) Direction
2024 has at long last recognised that Contraceptive implants will be added to the list
of drugs that Attract an Administration Fee (AAFs – PAs in old parlance).

This will mean that practices will automatically get paid a VAT Equivalent amount
equal to 20%
of the cost of the drug minus the clawback.

As Nexplanon (a contraceptive) is Actually Administered (AAs) in the practice, you will
not
be able to claim the VAT back on it. However,

VAT is charged at a Reduced Rate of 5%, so the overall effect is a small profit of about
6% when
you dispense Nexplanon – a big turnaround on the losses many practices bore
for the pleasure
of dispensing Nexplanon.

Dispex Members can see the impact by clicking HERE.