2016 CPI-Based Price-Adjustment Factors for Patented Drug Products
The following table provides the CPI-Based Price-Adjustment factors for 2016. These factors were based on the actual rate of CPI inflation of 1.5% in 2012, 0.9% in 2013, and 2.0% in 2014.
CPI-Based Price-Adjustment factors for 2016
| Benchmark Year |
2013 |
2014 |
2015 |
| Price-Adjustment Factor |
1.044 |
1.029 |
1.020 |
Based on these factors, one can derive: (1) a maximum allowable cumulative price increase between 2013 and 2016 of 4.4% for patented drug products with Canadian sales in 2013; (2) a maximum allowable cumulative price increase between 2014 and 2016 of 2.9% for patented drug products with Canadian sales in 2014; and (3) a maximum allowable cumulative price increase between 2015 and 2016 of 2.0% for patented drug products with Canadian sales in 2015.
The year-over-year price increase cap for the 12-month period ending December 2016 is 3.0% (=1.5 x Actual Inflation in 2014).