Biosimilars industry lobbies for variable CMS payment rates

The generics and biosimilars industry has released a document claiming that the US government could save over $10 billion in a decade if the Centers for Medicare & Medicaid Services (CMS) were to adopt a different reimbursement model.

Industry group the Association for Accessible Medicines (AAM) criticized the way CMS currently groups all biosimilars of a reference biologic under a single billing code and payment rate.

AAM argues that the current policy could cause biosimilars manufacturers to exit the market over time or decide not to enter at all, which it thinks would lead to higher costs for patients.

The group wants each non-interchangeable biosimilar to be given its own payment rate.

The report was prepared for AAM by consultants The Moran Company.