Robust Biosimilars Market Could Save U.S. Taxpayers $7B Annually, New Analysis Finds

Simple Policy Solutions Could Promote Biosimilar Use, Save Billions

U.S. taxpayers and the health care system at-large could save up to $7B annually with a stronger, more competitive biosimilars market, a substantial increase from the current annual cost-savings of $240.4M, 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 $7.0B annually; state Medicaid programs would save $1.2B annually, and commercial payers would save $3.3B annually.

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.

To learn more about the cost-saving benefits of biosimilars and/or the bipartisan legislation already introduced, contact forum@skdknick.com or visit supportbiosimilars.com.