MedPAC Suggests Biosimilars Are Helping Bring Down ASPs

While total Medicare spending on all Part B drugs continued to rise from 2018 to 2019, a Medicare Payment Advisory Commission (MedPAC) report found that average sales prices (ASPs) for some traditionally costly drugs actually decreased, a trend that may be due to biosimilar competition, posits the recent report.

The report, titled Health Care Spending and the Medicare Program, was published in July 2021. In 2018, total Part B drug spending was just shy of $35 billion, an amount that rose to more than $39 billion the following year. Among the top 10 drugs, 2018 total spend was almost $15 billion, increasing to more than $16 billion in 2019 — or about 41% of all Part B spending for the year.

Top Part B Drugs Are All Biologics

All of the top Part B drugs have been biologics since 2016. In 2019, the top 10 drugs included ones for cancer or supportive oncology care, ocular conditions such as age-related macular degeneration and inflammatory conditions such as rheumatoid arthritis. Regeneron Pharmaceuticals, Inc.’s ocular drug Eylea (aflibercept) ranked No. 1, with total Part B spending of more than $2.9 billion.

Angela Maas

Angela has an extensive background of editing, reporting and writing for trade and consumer publications. She has written Radar on Specialty Pharmacy (formerly called Specialty Pharmacy News) since she joined AIS Health in 2005 and has broad knowledge of the various issues at play within the space. Before joining AIS Health, she was managing editor at Employee Benefit News and Employee Benefit News Canada and managing editor at HemAware (a hemophilia publication), Lupus Living and Momentum (a multiple sclerosis publication). She has a B.A. in English and an M.A. in British literature from Arizona State University.

Related Posts
November 16

FDA Grants Interchangeable Status to Humira Biosimilar; Payers Should Prepare Now for 2023 Launches

November 16

New Tecartus FDA Approval for Adults With ALL Offers Welcome Therapeutic Option

November 16

Prime Therapeutics Launches IntegratedRx – Oncology, Partners on MIP Accreditation



Sign up for publications to get unmatched business intelligence delivered to your inbox.

subscribe today