What We're Reading: FDA's Biosimilar Plan; Philly Soda Tax Upheld; Health Subsidy Lawsuit Tossed

Gottlieb Announces FDA’s Biosimilar Action Plan

FDA Commissioner Scott Gottlieb, MD, announced the release of the agency’s Biosimilar Action Plan. According to The Center for Biosimilars^®, a sister website of The American Journal of Managed Care^®, the plan addresses 4 key areas and is meant to spur biosimilar competition in the US marketplace. While potential savings from biosimilars have been estimated to be as much as $54 billion between 2017 and 2026, the real savings have been just a fraction of even the most conservative estimates, Gottlieb noted. He blamed litigation for delaying market access of biosimilar products and preventing competition.

State Supreme Court Upholds Philadelphia’s Soda Tax

Philadelphia’s tax on soda and other sweetened beverages has been upheld by the Pennsylvania Supreme Court. The court ruled the city can tax the distribution of beverages even as opponents of the tax argued it was double taxation, reported The Philadelphia Inquirer. The 1.5-cent-per-ounce tax will fund pre-K, community schools, and improvements to parks, libraries, and recreation centers.

Judge Dismisses Health Subsidy Lawsuit

A lawsuit against the Trump administration over its decision to end cost-sharing subsidies under the Affordable Care Act was dismissed by a federal judge in California. The lawsuit was brought by 19 states, led by California, in October 2017, but on Monday the states asked the judge to stay or dismiss the lawsuit entirely, according to The Associated Press. The states said they had since found a workaround to protect consumers from higher costs by allowing insurers to raise premiums on some plans so consumers could get access to additional tax credits.