Hospital utilization of oncology biosimilars — and the price markup margins associated with them — have increased, according to a study published March 11 in JAMA.
Researchers from University of California Berkeley and Providence, R.I.-based Brown University analyzed Blue Cross Blue Shield claims data from 2020 to 2024 alongside drug acquisition costs and reimbursement prices for the study.
Here are five notes from the study:
- Between 2020 and 2024, 66,139 patients received oncology biologics and biosimilars across 1,541 hospitals.
- During the study period, hospital acquisition prices declined by 60% for bevacizumab biosimilars, 72% for trastuzumab biosimilar and 63% for rituximab biosimilars.
- At the same time, reimbursement prices paid by insurers declined by 32% for bevacizumab biosimilars, 36% for trastuzumab biosimilars and 34% for rituximab biosimilars.
- The difference in acquisition and reimbursement prices led to an increase in hospital markup margins.
Each additional dollar of acquisition price was associated with $2.72 in higher hospital reimbursement for bevacizumab, $1.82 for trastuzumab and $2.32 for rituximab. - As hospital markup margins for biosimilars increased, utilization rates increased from 18%-37% in 2020 to 84%-93% in 2024.
Read the full study here.
