Drug Prices | Association for Accessible Medicines
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Drug Prices

Generics and Biosimilar Medicines Deliver More Savings Every Year

At a moment when policymakers are contemplating measures to reduce drug prices for America’s patients, AAM’s 2021 U.S. Generic and Biosimilar Medicines Savings Report, featuring data from IQVIA, breaks the savings down by state, age, payer, common medical conditions and more.

Because tens of millions of Americans entrust their health to generics and biosimilars, they saved $338 billion in 2020, and nearly $2.4 trillion in the last decade.

Some key figures:

Proposed BBB Negotiation Framework Discourages Biosimilar Competition, Imposes Higher Costs on Commercially Insured Patients and Their Employers

This week, we learned that employers experienced a 6.3% jump in health benefit costs last year.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.

The Evidence Is Clear: Biosimilar Competition Will Achieve More Savings for Patients Than Build Back Better’s Negotiations

The biosimilars industry is proving that market competition works to drive down drug costs and increase patient access to medicines. According to recent data from IQVIA, savings from biosimilars increased over 800% from 2018 to 2020, from under $900M in 2018 to $7.9B in 20201. These savings are projected to reach over $30B annually by 2022, and collectively will save the U.S. health care system $133B from 2021 to 20252.

How Inflation Penalties for Generic Medicines Could Worsen Drug Shortages

Amid rising health care costs, generic drugs stand out for delivering low-cost, affordable and accessible health care options for patients. As a result of robust head-to-head price competition that rapidly drives costs down to a fraction of the brand price, generics today comprise more than 90% of all prescriptions dispensed in the United States but only 18% of prescription drug spending.

2021 Report

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U.S.

Association for Accessible Medicines Warns Build Back Better Act Threatens Patient Access

WASHINGTON, D.C. (November 19, 2021) — The House-passed Build Back Better Act (H.R. 5376) threatens the only segment of our health care system that consistently drives prices down for patients. For more than three decades, generic medicines have provided savings of up to 95% off brand-name drug prices through robust competition. The nascent biosimilar industry is demonstrating similar potential, having cut the growth of oncology pharmaceutical spending in half in just one year.

Inflation Rebate Proposal Builds on Bad Policy for Generics

Rebate Penalties Threaten Seniors’ Access to Generics

The high out-of-pocket costs for prescription drugs are top of mind for many Americans, particularly seniors in Medicare Part D. While there are meaningful bipartisan ideas to reduce patient liability for drug spending under the benefit, one policy under consideration, the application of inflation-based rebate penalties to generics, is misguided and would limit patients’ access to low-cost medicines.

AAM is doing our best to educate Congress about the impact and need to exempt generics for the sake of patients.

AAM Opposes Latest Prescription Drug Reform Framework

Proposed Medicare Negotiations, Inflation-Based Rebates Would Upend Patient Access to Generics and Biosimilars

WASHINGTON, DC (November 2, 2021) — In response to press reports on the current framework on prescription drug policies, AAM and its Biosimilars Council issued the following statement on the potential impact to patient access to generic and biosimilar medicines:

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