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Medicare Gives Biosimilars Boost, First Step in Drug Pricing Law

Oct. 3, 2022, 9:56 PM

Medicare will now pay more for lower-cost version of certain physician-administered drugs, the first step for the Biden administration implementing a new sweeping drug-pricing law.

The public health insurance program primarily for seniors will increase what it pays for biosimilars that cost less than their brand-name competitor in Medicare Part B for the next five years, starting Oct. 1.

This increased add-on payment—raised to 8% of the average sales price of the reference product from 6%—is meant to encourage doctors to use the biosimilar, copies of complex biologic drugs that are often among the most costly drugs, and for drugmakers ...