Medicare pays the ASP plus 8 percent (rather than 6 percent) of the reference biological product for a 5-year period for qualifying biosimilar biological products. A qualifying biosimilar biological product is a biosimilar with an ASP that is less than the ASP of the reference biological product for a calendar quarter during the applicable 5-year period.
For qualifying biosimilar biological products which CMS paid using ASP as of September 30, 2022, the applicable 5-year period began on October 1, 2022.
For qualifying biosimilar biological products for which CMS first paid using ASP between October 1, 2022 – December 31, 2027, the applicable 5-year period began the first day of that first calendar quarter.
Starting with the October 2022 Medicare Part B Payment Limit File, CMS shows the temporary increased add-on for qualifying biosimilar biological products for a period of 5 years.