OIG Says that Increasing Use of Biosimilars Could Reduce Part D Spending

Lexology May 3, 2022
Mintz

Last month, the Office of Inspector General for the Department of Health and Human Services (OIG) issued a report finding that Medicare Part D, and Medicare beneficiaries, could reduce spending with increased use of biosimilars. Specifically, OIG recommends that the Centers for Medicare & Medicaid Services (CMS) (1) encourage Part D plan sponsors to increase access to and use of biosimilars, and (2) monitor biosimilar formulary coverage to identify concerning trends. Let’s unpack the OIG’s report.

What is a biosimilar?

Biological products are usually large, complex molecules produced in a living system. Known as “biologics,” they are among the most expensive prescription drugs. For example, in 2018, biologics accounted for 40% of total spending on prescription drugs even though less...

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