Cape News

During a recent hearing, Health Subcommittee Chairman Vern Buchanan addressed the current state and potential benefits of the biosimilar market. Speaking to witnesses, Buchanan stressed the significance of biosimilars in reducing healthcare costs and increasing access to critical treatments.

Buchanan highlighted that the chronic disease epidemic in the United States is responsible for nearly 90% of the nation's $4.5 trillion healthcare costs. He stated, "42 percent of Americans have two or more chronic diseases, such as diabetes, cancer, or autoimmune diseases."

Biosimilars, which are more affordable versions of complex biological drugs, serve as one innovative solution. Since their market introduction in 2015, biosimilars have reportedly saved the healthcare system over $23.6 billion. Buchanan noted, "Within the Medicare program specifically, biosimilars reduced Part B spending by $4.4 billion in just 2023 alone."

He further remarked, "Biosimilars launch at prices up to 35 percent lower than branded drugs and can drive even further savings when they compete with drugs already on the market." Despite these advantages, Buchanan acknowledged that challenges remain, particularly concerning patient access and education.

Additionally, Buchanan pointed out discrepancies in the Medicare reimbursement model and the practices of Pharmacy Benefit Managers (PBMs) that may hinder biosimilar adoption. He suggested that by overcoming these hurdles, the healthcare system could potentially save $181 billion over the next five years.

The hearing also featured testimonies from various stakeholders in the biosimilar market, aiming to accelerate the dissemination and acceptance of these cost-saving drugs.

Buchanan concluded by expressing his intent to collaborate with colleagues to make innovative treatments more accessible and affordable, ultimately reducing the impact of chronic diseases.