According to a study released by Pacific Research Institute, biosimilars have the potential to bring significant savings to both state Medicaid programs and consumers with commercial insurance.
“Every state would experience significant savings in the state Medicaid programs from expanding the use of biosimilars compared to the more expensive originator biologics,” said Dr. Wayne Winegarden, director of PRI’s Center for Medical Economics and Innovation and author of this issue brief on biosimilars. “The same benefits will also accrue to patients covered in the commercial market.”
The study finds that in the current market, biosimilars save the health care system over $240.4 million. Greater use of these medicines, however, could generate even more savings. According to Dr. Winegarden’s analysis, if biosimilars obtained a 75 percent market share – less than the share in many EU nations – the resulting annual savings for the U.S. health care system could be nearly $7.0 billion.