Cheaper, nearly identical versions of lifesaving cancer drugs are quietly saving both patients and insurers real money — and a new UCLA study has the numbers to prove it. If you've ever watched a loved one battle breast cancer or lymphoma, you know the medicine can be as taxing on the wallet as it is on the body. But researchers at the UCLA Health Jonsson Comprehensive Cancer Center found that patients who used these lower-cost versions, called biosimilars, saved insurers about $3,820 a month and themselves $39.50 a month out of pocket compared with patients who stuck with pricier original drugs.
So what exactly is a biosimilar? Biologic drugs are complex medicines made using living cells, and they're crucial for treating cancers including breast cancer, lymphoma, colorectal cancer, lung cancer and ovarian cancer. But they're expensive. Biosimilars are highly similar to these originals — not identical, but with no clinically meaningful differences. Think of it like a generic brand of cereal: same ingredients, same nutrition, different box and a better price.
That price gap matters more than you might think. Prior research estimates that "financial toxicity" — the harm that medical bills cause to patients' wellbeing — may affect as many as half of all cancer patients in the United States. When money gets tight, people sometimes skip or cut back on their medications, which leads to worse health outcomes. Lowering costs isn't just about comfort; it can literally help people live longer.
The study, published in JAMA Oncology, dug into health insurance claims from 14,655 patient-drug pairs. Each pair involved a person with cancer who started one of three major biologic drugs — bevacizumab, rituximab or trastuzumab — between 2020 and 2023. Researchers followed their treatment and costs for a full year.
The findings were encouraging. A full 59.4% of patients exclusively used a biosimilar during their first 12 months of treatment, while 32.5% used only the originator. That tells researchers that biosimilars were snapped up mainly by people just starting treatment rather than by patients switching from the established drugs. It shows patients and doctors are choosing the cheaper option from day one.
This doesn't happen by accident. A federal policy passed in 2009 created a faster, abbreviated pathway for biosimilars to reach the U.S. market, designed to boost competition and drive prices down. By the end of 2024, 13 biosimilars were available for those three major cancer biologics — and competition is doing exactly what it was meant to do.
Savings of this size ripple outward. When insurers pay less, premiums can stay lower for everyone. When patients pay less, they're more likely to stick with their treatment. It's a rare win-win in the world of cancer care — proof that smart policy and market competition can lighten one of the heaviest burdens patients carry.