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Biosimilar substitution bill draws support for cost savings and narrow opposition over non‑interchangeable substitution
Summary
House Bill 17-25 would authorize pharmacists to substitute biosimilars for prescribed biological products and to require substitution when the biosimilar is cheaper; supporters point to cost savings, while biotech industry representatives object to allowing substitution of products the FDA has not deemed interchangeable.
House Bill 17-25, which would allow pharmacists to substitute FDA‑approved biosimilars for prescribed biological products and permit insurers to require biosimilars in certain coverage rules, drew broad support Wednesday in the House Health Care & Wellness Committee but also a narrow objection from the biotechnology industry over a drafting issue.
Committee staff explained that biosimilars are biological products highly similar to an FDA‑approved reference product; a subset of biosimilars that meet additional standards are designated "interchangeable," meaning pharmacists may substitute them under current state law. The bill would add "biosimilars" more broadly to the state substitution framework and require substitution if the wholesale price of a biosimilar or interchangeable biological product is lower than the prescribed product.
Supporters representing insurers, health systems and patient groups described potential cost savings and increased access. Jennifer Ziegler of the Association of Washington Health Plans noted that biosimilars are FDA‑approved and on average are about 40% cheaper than their reference biologics. Dr. Gurpreet Rawat, senior medical director for pharmacy at Kaiser Permanente and a practicing rheumatologist, described Kaiser Permanente's high adoption rates of biosimilars and cited large cost savings in recent years.
Bill opponents limited their concerns to one section of the draft. Bill Clark of the Biotechnology Innovation Organization said BIO supports encouraging substitution of interchangeable biosimilars but objected to language in Section 4 that, as drafted, would allow pharmacists to substitute biosimilars that the FDA has not determined to be interchangeable. "The FDA has not determined that [non‑interchangeable] biosimilars can be substituted," Clark said, and he offered to provide alternative language.
The prime sponsor acknowledged a drafting error earlier in the hearing related to removal of generic substitution language and said an amendment would be offered to correct the matter. No committee vote on the bill was taken during the hearing.
The bill also includes provisions allowing health carriers to require biosimilar step therapy and asks state‑procured qualified health plans on the exchange to follow Health Care Authority guidance about increasing generic and biosimilar utilization.
