New Analysis Confirms All 50 States Stand to Benefit from Increased Use of Biosimilars
WASHINGTON, D.C. (October 3, 2019) — Following the release of the Pacific Research Institute’s (PRI) latest issue brief entitled “The Biosimilar Opportunity: A State Breakdown” by Wayne Winegarden, the Biosimilars Forum President, Juliana Reed, today issued the following statement:
As other analysis have repeatedly shown, creating and sustaining a robust biosimilars market in the U.S. can significantly reduce U.S. health care costs and save patients and the health care system at-large billions of dollars. This new analysis showing that all 50 states — including both state Medicaid programs and state commercial markets — have a stake in these potential health care savings is encouraging, but it also underscores how much more needs to be done to ensure that biosimilars can effectively compete in the marketplace.
To actualize these savings, state governments and private sector firms must work concurrently to reform misaligned market incentives and correct misinformation that discourage biosimilars use. Unless and until those barriers are addressed, commercial insurers, state Medicaid programs, and patients are losing tens of millions of dollars a year.
PRI’s issue brief analyzed the nine, patient-accessible biosimilars in the U.S. and calculated the current and potential savings biosimilars could unlock in each state if they represented 25%, 50% and 75% of the market. The brief also identified three factors that are impeding biosimilar growth in the U.S. market.
“Every state would experience significant savings in the state Medicaid programs and commercial market from expanding the use of biosimilars compared to the more expensive originator biologics,” said report author Wayne Winegarden. “These results strengthen previous conclusions that immediate reforms are necessary to ensure biosimilars can more effectively compete against originator biologics and unlock billions in savings.”
According to the analysis, should biosimilars achieve 75% market share, the U.S. could save nearly $7 billion annually — including significant savings in individual states. For example, projected annual savings could reach $599 million in Florida, $511 million in California, $414 million in Texas, and $400 million in Pennsylvania.
To learn more about the Forum’s proposed policy options that can strengthen the U.S. biosimilar market and can unlock billions in health care savings visit https://supportbiosimilars.com/policies/