Biosimilars

The biosimilars industry is proving that market competition works to drive down drug costs and increase patient access to medicines. According to IQVIA, savings from biosimilars increased over 800% from 2018 to 2020, from under $900M in 2018 to $7.9B in 2020^1,2. This is the result of new biosimilar launches and robust competition under which multiple biosimilar drug manufacturers win market share based on lower prices.

In 2021, employers experienced a 6.3% jump in health benefit costs.¹ Findings such as these, paired with high brand-name drug costs, are why commercial and employer-sponsored health plans have long looked forward to savings from biosimilar competition. Unfortunately, employers soon will be facing higher costs, if provisions in the Build Back Better Act (BBB) that discourage biosimilar development are adopted by Congress.

Originally published on the Biosimilars Council.

Each year, the Association for Accessible Medicines releases a savings report that highlights where and how generic and biosimilar drugs save the US health care system hundreds of billions of dollars - over $338 billion in 2021.

Biosimilars provide more options for care at a lower cost for patients, but due to Medicare’s perverse incentives, many PBMs and health plans have been slow to prioritize biosimilars, leavings savings on the table. Last week, the HHS Inspector General (OIG) released an important analysis that drives home just how poorly Medicare plans are doing when it comes to making FDA-approved biosimilars available to America’s seniors.

Generic and Biosimilar Savings for Asthma, Heart Disease and Other Common Conditions

In 2020, safe, effective, FDA-approved generic and biosimilar prescription medicines generated $338 billion in savings for U.S. patients and the health care system as a whole. No matter what condition you treat with generics or biosimilars, you can take these medicines with confidence. Here are condition-specific examples.

Greg, 37, of Los Angeles, Cal., spends most of his time hiking, running and lifting weights, but his greatest passion in life is pizza. Not long ago, he made a bet with his wife that he could eat pizza and nothing but pizza for 45 days. As if that weren’t unusual enough, you should know that Greg has a history of ulcerative colitis.

Steroids were not controlling his condition, so his gastroenterologist put him on a biologic medication. After a while, his insurance plan recommended switching to a biosimilar—a safe, effective alternative to a brand-name biologic.

Eileen, 28, lives in New York City and is pursuing her dream of a career in musical theater. Her stage credits keep growing, and thanks to her biosimilar medication, her Crohn’s disease isn’t getting in the way.