We commit to limited U.S. price increases on our medicines over time.
We acknowledge our role in preserving the sustainability of our healthcare system and in limiting our contribution to U.S. healthcare spending growth. Should we take a list price increase on one of our medicines, our guiding principle is to limit the total annual increase during our fiscal year (Jan. 1 to Dec. 31) to a level at or below the projected growth rate for National Health Expenditures for said year.
Our benchmark, the projected U.S. National Health Expenditure (NHE) growth rate, is estimated and published annually by the Centers for Medicare & Medicaid Services (CMS). The NHE projection provides a critical, forward-looking view needed for business planning. NHE measures spending across all healthcare goods and services and reflects payments made by both public and private payors.
Once the NHE projection is updated each year, we will adjust any future planned pricing actions to reflect the projection. Given the need for business planning, we will adopt the updated standard by April 1 each year.1 More information about the NHE growth rate can be found here.
Should we take a price increase above the NHE growth rate for a given medicine that results in a list price increase greater than $15 for a full course of treatment per year, we will provide our rationale, highlighting clinical value, real-world evidence, regulatory change, new data or other circumstances that support our decision.
1 As measured by National Health Expenditures, published annually by the Centers for Medicare & Medicaid Services