WASHINGTON, DC (January 30, 2023) — The Association for Accessible Medicines (AAM) applauds the Centers for Medicare & Medicaid Services (CMS) for several of the recommended provisions outlined in the proposed Patient Protection and Affordable Care Act, HHS Notice of Benefit and Payment Parameters for 2024. In particular, AAM publicly commends the administration’s efforts to standardize plan choice by requiring generic drugs be placed on “generic” tiers and brand-name drugs on “brand-name” tiers.
Numerous studies agree: Generics provide savings on prescription drugs. And six years into a sustained period of price deflation, many generic prices are lower than ever. But inexplicably, patients are paying more for many generics. Although the Medicare program has rules to safeguard beneficiaries, it has allowed Medicare drug plans to make changes that require patients to pay more for many generic drugs even as the prices of those drugs have fallen.
WASHINGTON D.C. (October 3, 2022) -- The Association for Accessible Medicines (AAM) and its Biosimilars Council applaud the Centers for Medicare & Medicaid Services for its support of biosimilars and rapid implementation of the enhanced payment for biosimilars in Medicare Part B.
Despite Savings from Generic Drugs, Many Patients Continue to Pay More than Necessary
WASHINGTON, DC (September 21, 2022) — Today, the Association for Accessible Medicines (AAM), the leading trade association for generic and biosimilar manufacturers, released its 2022 U.S. Generic & Biosimilar Medicines Savings Report highlighting the value of generic and biosimilar medicines.
Featuring data from IQVIA, the 2022 U.S. Generic and Biosimilar Medicines Savings Report reveals generic and biosimilar drugs generated a record $373 billion for America’s patients and healthcare system in 2021. Despite the tremendous savings from generic drugs, many patients continue to pay more than necessary.
Congress is actively seeking to advance legislation to allow the Medicare program to “negotiate” the prices of brand drugs. However, these proposals neglect to consider the impact on the development of lower-cost generic and biosimilar medicines.
Generic medicines offer proven cost savings for America’s seniors and taxpayers, more than $2 trillion over the past 10 years alone. This is the result of robust head-to-head price competition under which multiple generic drug makers fight for market share based on dramatically lower prices.
Recently, the Centers for Medicare & Medicaid Services (CMS) released the 2021-2030 National Health Expenditure (NHE) report, prepared by their Office of the Actuary. The report serves as the authoritative estimate of total U.S. health spending and provides important clues as to what is (and is not) driving health care costs.1
As policymakers seek to respond to concerns about high drug costs, a recent report may provide a path forward. The Medicare Payment Advisory Commission (MedPAC) provides independent expert advice to Congress on Medicare payment policies and in a recent report to Congress, it recommends key changes to the Part D program that could serve as a foundation for sustainable savings through generic and biosimilar adoption.