Biosimilars provide competition for biologics, which account for a significant and growing portion of Medicare Part B drug spending. This report evaluates the current state of biosimilar competition in Medicare Part B and explores opportunities to achieve further savings.
In 2023, eight reference biologics in Medicare Part B were subject to competition from 27 biosimilars. Medicare spent $2.7 billion on these biologics in 2023. Biosimilar uptake varied widely by biologic, from 26 percent to 80 percent. Biosimilar competition reduced Medicare Part B drug program spending and beneficiary out-of-pocket costs on these drugs by about 62 percent in 2023 compared to projected spending without biosimilar competition. We estimate that beneficiaries using one of these biologics saved nearly $2,000 on average in potential out-of-pocket costs in 2023 due to biosimilar competition. Policies to increase biosimilar uptake or otherwise reform Medicare Part B drug payment could yield substantial additional savings for the program, enrollees, and taxpayers.
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