U.S. Taxpayers and the Health Care System At-Large Have Lost out on Nearly $20 Billion in Savings Since 2018
Washington D.C. — A new analysis from the Pacific Research Institute found that the U.S. has lost nearly $20 billion in potential savings since 2018 without access to a stronger, more competitive biosimilars market, and that number continues to grow. The potential lost savings in this year alone is $10.3 billion.
A majority of states across the U.S. currently experience low use of biosimilars, meaning that patients, employers, and the government are paying for higher-cost originator biologics instead of the lower-cost biosimilars. If biosimilars represented a larger part of the market, as much as 75 percent, federal savings would be as much as $7 billion per year, State Medicaid programs would save as much as $1.2 billion per year, and Commercial payers would save $3.3 billion annually.
Now more than ever, Americans need cost-savings solutions that give patients greater access to safe and effective treatment options. This analysis proves what we already know: the longer we wait to access and use biosimilars, the more money the government, states, businesses, and patients will lose,” said Juliana Reed, President of the Biosimilars Forum. “As Congress looks towards rebuilding the economy in the years to come, biosimilars are a bipartisan cost-savings solution.
Currently, there are eight policy solutions introduced in Congress that would help make up for these lost savings by encouraging competition and providing direct cost savings to employers and taxpayers by increasing use and access to biosimilars.
For more information on the lost savings to-date and biosimilars policies in Congress visit: supportbiosimilars.com.
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