Seeing the future of self-insurance

The 340B Drug Pricing Program, established in 1992, has been a crucial component of the healthcare system, dedicated to assisting eligible healthcare organizations in serving vulnerable patient populations by granting them access to discounted drugs. At the heart of this program are the 340B rebates, which enable qualifying entities such as safety-net hospitals, community health centers, and other eligible providers to acquire medications at significantly reduced prices.

In January 2023, the first biosimilar version of Humira, which is a widely used injectable drug for inflammatory diseases, was approved, marking the end of AbbVie’s two-decade market exclusivity. Humira is used to treat conditions like rheumatoid arthritis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis, and it works by targeting certain proteins in the immune system.

In recent years, drug shortages have become a major concern for healthcare systems around the world. The COVID-19 pandemic has only amplified this issue, as the demand for certain drugs has skyrocketed while the supply chain has been disrupted.

You may have never heard of biosimilar drugs and that’s probably because they are not commonly prescribed in the United States even though they have been around for over 20 years. So, what are biosimilar drugs? A biosimilar drug is no different in terms of safety and effectiveness than a biologic product, also known as a reference product, and while highly similar it is not identical.