US GPhA fears proposed drug payment model's impact on biosimilars

The US Generic Pharmaceutical Association (GPhA) and its Biosimilars Council have expressed fears over a proposed demonstration from the Centers for Medicare and Medicaid Services (CMS) to revamp how the Medicare Part B program pays for prescription drugs.

They have concerns over the potential erosion of the economic incentives that drive the US healthcare system to lower-cost therapeutic alternatives, particularly in the biosimilars space.

The GPhA and its Biosimilars Council, a division of the trade group which works to ensure a positive environment for patient access to biosimilar medicines, have also urged the agency to rethink its proposal to avoid adoption of value-based tools, fearing this may undermine the balance between competition and innovation.