CMS implements Inflation Reduction Act payment increase for qualifying biosimilars

Effective Oct. 1 for five years, the Centers for Medicare & Medicaid Services will pay Average Sales Price plus 8%, rather than ASP plus 6%, for biosimilars whose average sales price does not exceed the price of the reference biological product. The payment increase was included in the Inflation Reduction Act of 2022. For new biosimilars that qualify, the five-year period will begin on the first day of the calendar quarter for which ASP payment for that biosimilar begins under Medicare Part B.