President Trump Can Easily Reduce Health Care Costs for U.S. Seniors and Taxpayers by Increasing Biosimilar Use
WASHINGTON – As President Trump finalizes an executive order to address Medicare health care costs, the Biosimilars Forum urges the administration to include solutions that increase use of and access to biosimilars for our nation’s seniors and patients in Medicare.
Biologics are currently the biggest driver of drug spending in the Medicare program. Millions of Americans rely on these costly treatments for some of life’s most serious diseases, including cancers, rheumatoid arthritis, psoriasis, inflammatory bowel disease, and Crohn’s Disease. Biosimilars are FDA-approved, equally safe and effective lower-cost alternatives.
“Simple biosimilar policies can save Medicare beneficiaries up to $3.3 billion in health care costs and $8.2 billion for taxpayers over the ten years. There is no question that we must create policies that increase biosimilar use should be part of any executive order to lower Medicare costs. By implementing solutions that increase biosimilar access– such as eliminating out-of-pocket costs (co-pays), increasing physician add-on payments and implementing a shared savings program—President Trump can quickly generate competition that will reduce the cost of prescription drugs for seniors and patients in Medicare Part B, saving as much as $54 billion.”
“The Forum urges President Trump to act swiftly to alleviate the financial burden on our nation’s seniors, patients and taxpayers by making simple changes that increase biosimilars and result in near-immediate health care savings.”
Yesterday, the Pacific Research Institute (PRI) released a state-by-state analysis of the significant savings biosimilars can provide. 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.
“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.”
For more information on the potential savings that can be realized with increased access to biosimilars, visit supportbiosimilars.com.