The cost of EpiPen, the injection used to treat life-threatening allergic
reactions in children, recently skyrocketed from $100 to $600. In response
to the public furor that ensued after this hike, Mylan, the product’s
manufacturer, announced it would offer coupons that provide up to half
the expense "for patients in health plans who face higher out-of-pocket
costs." In addition, the drug company said it would raise the income
level at which families may receive help in buying the medication. These
measures have failed to satisfy critics, who think the price increases
In an interview with CNBC, Mylan CEO Heather Bresch defended the cost hike,
explaining that the U.S. health care system necessitates higher prices
for drugs because of the complex network of all the entities involved,
including physicians, insurers, drug companies and pharmacy benefit managers.
However, many feel this argument doesn’t hold water because of her
reported $18.9 million salary in 2015. Mylan and other drug companies
that have engaged in price gouging have been the recipients of fury from
Congress and condemnation from patient advocate groups.
Congressional lawmakers may want to act, but their options are limited
because of regulations that are a part of the Affordable Care Act. Marianne
Udow-Phillips, director of the Center for Healthcare Research & Transformation
at the University of Michigan, tells
USA Today that the federal government gave up Medicare’s right to negotiate
cost increases in an agreement to obtain the drug industry’s support
for the health care legislation. While Democratic Presidential Candidate
Hilary Clinton wants the government to restore Medicare’s bargaining
leverage, it remains to be seen whether anything can or will be done to
protect the public from drug cost spikes.
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