Increased Medicare payment for biosimilars took effect Oct. 3, one of the first Medicare provisions of the Inflation Reduction Act to kick in.
The law provides a temporary increase in the add-on payments for biosimilars with an average sales price lower than the reference biological project. The Inflation Reduction Act bumps Medicare's reimbursement for biosimilars from the average sales price plus 6 percent to the average sale price plus 8 percent.
In a news release, HHS Secretary Xavier Becerra and CMS Administrator Chiquita Brooks-LaSure touted the Inflation Reduction Act's Medicare provisions.
"The temporary Medicare Part B payment increase for qualifying biosimilars that is now in effect will foster competition in the drug marketplace for conditions such as diabetes, cancer and immune disorders, and will improve access to these life-saving medicines that help keep people with Medicare healthy," Ms. Brooks-LaSure said.
The payment increase is one of many Medicare policy changes included in the Inflation Reduction Act. In 2023, insulin copays will be capped at $35 for Medicare Part D enrollees, and all vaccines recommended by the CDC will be available to Medicare beneficiaries without a copay.