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Subcommittee approves bill allowing TennCare to use biosimilars to lower drug costs
Summary
House Bill 1198 passed the Insurance Subcommittee; the bill authorizes TennCare to utilize biosimilars and asks the TennCare Pharmacy Advisory Committee to consider biosimilars on preferred drug lists. Sandoz representative said wider biosimilar use could save Tennessee hundreds of millions annually.
The Insurance Subcommittee voted 6-0 to pass House Bill 1198, which authorizes TennCare to use biosimilars as a cost-saving measure and directs the TennCare Pharmacy Advisory Committee to consider biosimilars when recommending drugs for a state preferred drug list.
"A biosimilar is a biologic product that is highly similar to its reference product... Biosimilars have no clinically meaningful difference from the reference product in terms of safety or effectiveness and are similarly approved," Chairman Kumar, sponsor of the bill, said.
Kate Kolescher, director of state government affairs for Sandoz, testified in support and told the committee that wider use of biosimilars could produce substantial savings. "A PRI report estimates that Tennessee could save as much as $390,000,000 annually by increasing the use of biosimilars," Kolescher said. She explained that biosimilars are comparable to generics for biologic medicines and noted that Tennessee is among a small number of states without language allowing plans to consider the broader category of biosimilars beyond those designated "interchangeable." Kolescher said about 44 biosimilars are on the market but only 13 hold an interchangeable designation.
Committee members asked about FDA approval and European experience; Kolescher said Europe has more extensive use and that post-market data show no safety signals over large patient-days. The clerk recorded the vote as "6 ayes and 0 nays." The bill will advance to the full Insurance Committee.
