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 Department of Health has now instructed the NHSBSA Prescription Pricing Division to process applications for price increases for products in Part IXA (excluding catheters) and Part IXR - from 1 April 2007.

Companies may apply for price increases for a particular product from 1 April 2007. Applications for price rises should be sent by companies so as to be received by the NHSBSA Prescription Pricing Division two months before the price rise is intended to take effect; for example price rises requested between 1 April and 30 April will be effective for the July Drug Tariff. 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 percent.

In light of the Department of Health's consultation launched on 6 September 2007 (Arrangements under Part IX of the Drug Tariff for the provision of stoma and incontinence appliances - and related services - to primary care: revised proposals), companies cannot have a price increase for products in Part IXA catheters and Parts IXB and IXC at this time.

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