Friday, June 22, 2018

How Will the Biosimilars’ Change Impact Part D?


Jun 18, 2018
In just a little more than six months, biosimilars reimbursed in Medicare Part D will get a boost from legislation passed earlier this year. Plans and patients also stand to win, but manufacturers, not so much.
In Part D, beneficiaries consistently pay a 25% cost share until they hit the catastrophic phase, when their responsibility decreases to 5% of the drug. During the initial coverage period, plan sponsors are responsible for 75% of a drug’s cost; during the “donut hole” coverage gap, brand-name drugs’ manufacturers must pay 50% of the drugs’ cost, while plan sponsors’ responsibility drops to 25%. Biosimilar manufacturers, by contrast, are excluded from having to provide this discount, leaving plan sponsors’ responsibility at 75%.
Yet as of 2019, biosimilars will be treated the same as brand-name drugs rather than as generics in the coverage gap. The legislation also closes the Part D coverage gap discount program in 2019 as opposed to 2020.
Reclassifying biosimilars could impact physician prescribing, contend consultant Jim Martin, Ph.D., and Elan Rubinstein, Pharm.D., principal at EB Rubinstein Associates. “Equalization of patient out-of-pocket costs in the donut hole may also make it more likely that Prescription Drug Plans will favor biosimilars in their drug formularies,” they add.
It will be interesting to see how manufacturers with branded medications will respond to the changes and how plans respond to manufacturers’ moves, says Andrew Cournoyer, R.Ph., vice president, director, payer access solutions at Precision for Value. “Will [manufacturers] offer additional rebates to incentivize payers to continue covering” the branded products? “Will plans look at implementing preferred and not preferred specialty tiers?” he asks.


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