New MGA Report on a Medicare Shared Savings Demonstration for Biosimilars

Matrix Global Advisors (MGA) today released a new report, “Shared Savings Demonstration for Biosimilars in Medicare: An Opportunity to Promote Biologic Drug Competition,” by MGA founder and CEO Alex Brill. The report identifies a unique opportunity in Medicare Part B to boost biosimilar utilization through the establishment of a shared savings demonstration model administered by the Centers for Medicare & Medicaid Services Innovation Center.

Biologic drugs are the driver behind increasing per-capita drug spending in the United States, and biosimilar competition offers a critical market-based strategy to curb overall drug costs. But current Medicare Part B reimbursement does not incentivize physicians to utilize lower-cost drugs. A shared savings program would align physician incentives with the objective of reducing overall Medicare program expenditures while preserving the quality of care.

The report identifies four principles that should underpin an Innovation Center shared savings model for biosimilars.

For a PDF of the full report, click here.
For a summary of the report, click here.