ICYMI: Experts Detail How Shared Savings Model for Biosimilars Could Provide Savings for Seniors, Patients and Medicare
Washington, DC — As a shared savings model gains bipartisan traction among politicians, experts continue to tout the billions of dollars of savings potential for seniors, patients and Medicare. In a recent analysis, Alex Brill, Founder of Matrix Global Advisors (MGA), an economic consulting firm, and a Resident Fellow at American Enterprise Institute, found that a robust biosimilars market could save U.S. taxpayers billions annually.
“A shared savings program would align physician incentives with the objective of reducing overall Medicare program expenditures while preserving the quality of care.” Brill writes in the analysis. “It would also foster greater competition and signal to future market participants the viability of the US biosimilars market.”
Anna Rose Welch, Chief Editor of Biosimilar Development, took a closer look at the analysis’ findings that a CMMI shared savings model would incentivize physicians to choose the lower cost product when prescribing to patients.
“Overall, a shared savings model touches a lot of the pieces of the biosimilars puzzle,” Welch said in a recent Life Science Connect podcast. “Each player gets a win. The healthcare system gets savings… you’d have patients realizing cost-savings, physicians realizing that incentive, getting a cut of those savings for the work that they’ve done… It’s really an all-encompassing program.”
James L. Martin, president of the 60 Plus Association, which represents 5 million seniors nationwide, wrote in an op-ed published in The Hill this week how a CMMI demonstration for biosimilars already shows promise with bipartisan support in the House and Senate.
“This month, Sens. John Cornyn (R-Texas) and Michael Bennet (D-Colo.) introduced the Increasing Access to Biosimilars Act (IABA). This bipartisan bill, previously introduced in the House by Reps. Richard Hudson (R-N.C.), Angie Craig (D-Minn.), and Brian Fitzpatrick (R-Pa.), will create a pilot program that incentivizes providers to use low-cost biosimilar drugs in the Medicare program whenever possible,” Martin wrote. “The benefit that providers making greater use of biosimilars will provide to preserving Medicare’s finances is unquestioned. These drugs, developed to be similar to already-existing FDA medicines, cost up to 30 percent less than brand-names, and a 2017 RAND study estimated that they could save the U.S. healthcare system as much as $150 million over a 10-year period.”
You can also read a detailed interview on the benefits of a shared savings program from June with Biosimilars Forum’s President Julie Reed.