Congressman Gonzalez Paves the Way for Prescription Drug Savings for Seniors and Medicare Beneficiaries

WASHINGTON – Congressman Vicente Gonzalez (TX-15) recently announced that the Centers for Medicare and Medicaid Services (CMS) issued a finalized 2018 Quality Payment Program and Physician Fee Schedule (PFS), which includes a provision that modernizes the Medicare payment system to increase competition and opportunity for innovation of biosimilars. A biosimilar product is highly comparable to a biological product that provides the potential to yield the same effects at a lower cost.

In May, Congressman Gonzalez, Congresswoman Anna Eshoo (CA-18), Congressman Joe Barton (TX-06), and nearly 50 other members of Congress sent a letter to the then-Secretary of Health and Human Services, Tom Price, and CMS Administrator, Seema Verma, urging CMS to reevaluate each individual biosimilar and assign a unique combined code for payment and identification.

"The biosimilar marketplace is new and vibrant, and given the opportunity, can give Medicare patients lower prices for prescription drugs," Congressman Gonzalez said. "I thank Administrator Verma for taking the opportunity to revise the biosimilar reimbursement policy in the PFS for 2018 and look forward to seeing first-hand the positive changes it will have on Medicare beneficiaries."

Since the enactment of the Biologics Price Competition and Innovation Act of 2009 (BPCIA), the market for biosimilars has seen an increase in competition with innovative biologics. By modernizing Medicare reimbursements and allowing these competitive rates to flourish, patients can reap the benefits of more options and affordable prices.