Drug Tariff Part IX Price Increase Mechanism

Following the suspension of the price increase mechanism for products in Part IX of the Drug Tariff,  the price increase mechanism was re-instated in April 2007 for products in Part IXA (excluding catheters) and Part IXR.

On 1 October 2010 the reimbursement price increase mechanism was re-introduced for Part IXA catheters, Part IXB and Part IXC.

Applications for price increases should be sent by companies so as to be received by NHS Prescription Services two months before the price rise is intended to take effect; for example price rises requested between 1 October and 31 October will be effective for the January Drug Tariff.

A Part IX price increase request template may be downloaded and submitted to nhsbsa.pixie@nhs.net

Companies cannot request a price increase earlier than two months before it takes effect. The maximum price rise will be calculated as being the forecast of the gross domestic product (GDP) deflator minus 0.75.  The GDP deflator currently being used to calculate the annual price increase is 1.45%.

All generic products will continue to receive their price increase in June each year.