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Homehealth insuranceUtilization administration for biosimilars – Healthcare Economist

Utilization administration for biosimilars – Healthcare Economist

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Once we consider utilization administration (e.g., prior authorizations, step edits), we frequently assume payers solely use these for greater price branded merchandise together with biologics. Generic medication ought to have low price sharing and restricted utilization administration. One query, nonetheless, is whether or not payers’ utilization administration practices for biosimilars mirror these of biologic merchandise, or small-molecule generics, or someplace in between.

A paper by Yu et al. (2023) goals to reply this query. The authors used knowledge from the Tufts Medical Middle Specialty Drug Proof and Protection (SPEC) database masking 19 commercially-available biosimilars equivalent to 7 reference merchandise. These merchandise have been used for 28 distinctive indications. The authors discover that:

In contrast with reference merchandise, well being plans imposed protection exclusions or step remedy restrictions on biosimilars in 229 (19.4%) selections. Plans have been extra prone to limit biosimilar protection for the pediatric inhabitants (odds ratio [OR] 11.558, 95% confidence interval [CI] 3.906–34.203), in ailments with US prevalence greater than 1,000,000 (OR 2.067, 95% CI 1.060–4.029), and if the plan didn’t contract with one of many three main pharmacy profit managers (OR 1.683, 95% CI 1.129–2.507). In contrast with the reference product, plans have been much less prone to impose restrictions on the biosimilar–indication pairs if the biosimilar was indicated for most cancers remedies (OR 0.019, 95% CI 0.008–0.041), if the product was the primary biosimilar (OR 0.225, 95% CI 0.118–0.429), if the biosimilar had two rivals (reference product included; OR 0.060, 95% CI 0.006–0.586), if the biosimilar might generate annual record value financial savings of greater than $15,000 per affected person (OR 0.171, 95% CI 0.057–0.514), if the biosimilar’s reference product was restricted by the plan (OR 0.065, 95% CI 0.038–0.109), or if a cost-effectiveness measure was not accessible (OR 0.066, 95% CI 0.023–0.186).

One fascinating discovering was that giant PBMs really had much less restrictive insurance policies over biosimilars. Why?

… it has been posited that the bargaining energy of bigger PBMs could also be so vital that biosimilar producers might generally increase record costs, and therefore rebates, to acquire a spot on the formularies of huge PBMs. This would depart smaller PBMs with greater record costs however
smaller rebates as a result of their comparatively smaller bargaining energy, during which case the biosimilars carry much less worth to them.

https://hyperlink.springer.com/article/10.1007/s40259-023-00593-7

You may learn the complete paper right here.

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