Robust Biosimilars Market Could Save U.S. Taxpayers $7 Billion Annually, New Analysis Finds
Simple Policy Solutions Could Promote Biosimilar Use, Save Billions
WASHINGTON — U.S. taxpayers and the health care system at-large could save up to $7 billion annually with a stronger, more competitive biosimilars market, a substantial increase from the current annual cost-savings of $240.4 million, according to a new analysis.
The analysis, conducted by Pacific Research Institute’s Wayne Winegarden, PhD, found that if biosimilars obtained 75% market share, federal savings would be $7.0 billion annually; state Medicaid programs would save $1.2 billion annually, and commercial payers would save $3.3 billion annually.
Study after study shows that patients and taxpayers could save billions if a stronger and more competitive biosimilars market were to materialize — if only simple reforms were passed to remove anti-competitive barriers,” said Juliana Reed, President of the Biosimilars Forum. “With the government spending trillions in response to COVID-19, it’s even more pressing to reduce spending wherever we can. It’s time we look to the biosimilars market.
Employers and the government, Winegarden suggests, should pursue policy changes that “correct currently ineffective regulatory policies, promote greater education of the benefits that biosimilars offer, and eliminate adverse market incentives that discourage biosimilar use.”
Congress has recognized the cost-saving attributes of biosimilars with several bipartisan proposals introduced in the House and Senate. These policies can increase access to and use of biosimilars — providing direct cost savings throughout the health care system.