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Epipen case study
Epipen case study
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Since generic drug company Mylan purchased EpiPen nine years ago, the current cost of EpiPen has increased by five hundred percent (Wieczner n.pag.). Earlier in August, Mylan’s CEO, Heather Bresch, on a conference call argues that EpiPen sticker shock should be accused partly on Obamacare (qtd. in Wieczner n.pag.) Bresch mentions that employers’ risen usage of high deductible plans, one of the aftereffects of the law, has followed in consumers paying extra out of pocket for the drug, and that is where lots of complaints around EpiPen is coming from (qtd. in Wieczner n.pag.). Besides, Bresch adds that the approximate six-hundred dollars extensive charge, that when you compare other treatments, the EpiPen does not land into the expensive product category (qtd. …show more content…
Wieczner mentions that “in its new statement, Mylan again pointed to pointed to health insurance trends “driven by the implementation of the Affordable Care Act” as the reason patients “have faced higher costs for their medicine” (n.pag.). Executives including Bresch of Mylan reference EpiPen as her baby, because this is Mylan’s first billion-dollar drug, that reach $1 billion in 2014 and 2015 sales (Wieczner n.pag.). When Mylan bought EpiPen as part of a negotiation with Merck in 2007, the drug had previously been on the market for almost twenty-five years and the drug’s original approval in the United States was in 1939, yet it was not that well-known back in that time (Wieczner n.pag.). Back then, in sales, EpiPen was earning less than $250 million (Wieczner n.pag.). Npw, forty-seven states have laws about forming epinephrine auto-injectors to be available in schools in case of a severe allergic reaction, mainly as a result of Bresch’s endeavors (Wieczner
Without question the cost of medical care in this country has skyrocketed over the last few decades. Walk into an emergency room with an earache or the need for a few stitches and you’re apt to walk out with a bill that is nothing short of shocking.
There seems to be no law protecting patients from the price increases that these big pharmaceutical companies are making. Marcia Angell, is an American physician, author, and the first woman to serve as editor-in-chief of the New England Journal of Medicine. In chapter 10 of her book, The Truth About the Drug Companies, she talks about stretching out the idea on monopoly. Patents makes it illegal for a specific set amount of time for competitors to sell the same/similar drugs. Once the patent is over, when the company loses its rights to a drug, the Food and Drug Administration (FDA) arranges for the generic version of the drugs made by a different company to go out on the market. When there is only one generic brand on the market, the cost may not be as cheap because the generic brand and the brand name shadow prices. This keeps the generic version just beneath the price of the brand name. Although the generic is not that much cheaper than the brand name, in the course of one year, the brand name company will lose hundred of millions of dollars due to generic drugs. From an economic point of view,
Depending on which insurance consumers have can affect how much out of cost or co-payments consumers will have to pay. Insurance can cover either a large portion of the cost of prescriptions or eliminate the $200.00 co-payment that EpiPens require. Some insurances may be able to perform both. Adam Fein, president of the Pembroke Consulting, states that “some insurers may have negotiated deals with Mylan that end up making the brand-name cheaper than the generic” (Drake 3). If this is the case, some insurances would rather have consumers purchase the name-brand version of the EpiPen rather than the generic version that is offered. Mylan Pharmaceuticals offers a coupon that takes off up to $100.00 per prescription. This coupon is limited to only three prescriptions of two-pack cartons, however. This would leave the total of the EpiPens to $500.00 before taxes. Mylan Pharmaceuticals also offers the Mylan’s Patient Assistance Program which “allows patients, whom are without insurance, eligibility to apply for free EpiPens” (Drake 5). Mylan Pharmaceuticals now offers no-copayment fees to those who use a savings card provided by Mylan when purchasing the name-brand
... (2013) IMS health study points to a declining cost curve for U.S. medicines in 2012 Retrieved from http://www.imshealth.com/portal/site/ims/menuitem.d248e29c86589c9c30e81c033208c22a/?vgnextoid=8659cf4add48e310VgnVCM10000076192ca2RCRD&vgnextchannel=437879d7f269e210VgnVCM10000071812ca2RCRD&vgnextfmt=default
Fontenot, S. (2013). Understanding the Affordable Care Act Bit by Bit: Will Transparency and Sunshine Shrink Costs?. Physician Executive, 39(5), 86-91.
While many low-income families obtain prescription coverage through government programs and may receive relatively generous drug benefits, those who have no prescription coverage are required to pay the full retail price charged at their pharmacies. Because the cash-paying customers are
(2015). The Affordable Care Act at 5 Years. New England Journal of Medicine N Engl J Med, 373(16), 1579-1580. doi:10.1056/nejmc1510015
In 2007, pharmaceutical company Mylan acquired Merck and their multibillion dollar generics business under CEO Robert Coury. Coury immediately appointed one of his top executives, Heather Bresch, to integrate the new products into the company’s pipeline. Bresch became Mylan’s COO later that year and decided to focus primarily on the Epipen, a spring-loaded syringe device created to deliver an exact dose of epinephrine, a severe allergy life-saving drug which immediately reverses life-threatening reactions to bee stings, peanuts, and other allergens.
The lives of a lot of Canadians are highly dependent on the prescription drugs that they take. Pharmaceuticals have become a part of almost everyone’s day-to-day life. However, over the past thirty years or so there have been dramatic increases in both the demand for drugs and their cost. On February 28, 2013, Steve Morgan published his article entitled “Canadians Are Over-Paying for Pharmaceuticals Year After Year” in the Huffington Post. He addressed the cons of a multi-payer system and talked about how a single-payer system would be beneficial to the Canadian health care system. This paper will address the reasons for which Canadians are paying an excessive amount for pharmaceuticals. Comparisons with various countries abroad and strategies to reduce drug costs will also be discussed.
...emand for prescription drugs over the next 25 years. The number of people between 45 and 64 years old will increase 41% by 2015. Given the rise in age population and life expectancy rates around the world and the level of pharmaceutical use by aging individuals, growth in the industry should remain in an upward trend.
The United States spends more per capita on health care than any other country, with the percentage of gross domestic product dedicated to health care doubling from 9% in 1980 to 18% in 2011(Kesselheim,). One of the contributors to health care inflation is prescription drugs. Pharmaceuticals account for about 10% of total health care costs, spending on pharmaceuticals is poised to swell in upcoming years as a result of the increasing prices of complex specialty medicines (Kesselheim). Name brand drugs are going to have to be set at higher prices, in order for pharmaceutical companies to receive a profit. If the patient has full coverage on a medication, there is a greater chance that medication will be taken, although it may not be
In a time of economic hardship, Americans have become more and more conscious of how they spend their money. For obvious reasons, nearly all consumers would agree that overpaying for a product is bad, what they don’t realize is that over half of Americans already do. The american health care system has a multitude of flaws with a bunch of causes that raises cost, but at the root of it all is what sets america’s system apart, private insurance. Because of private health insurance,the cost of health care in the United States has risen exponentially.
There are three issues when it comes to the health care cost rising. The first is the rising cost in prescription drugs. The second area of rising cost is the increased technologies when it comes to the medical industry. The third problem is the aging population. Prescription drugs are the area of the fastest growing health care expense, and it is projected to grow at 20 to 30 percent each year over the next several years. There are many newer, more expensive drugs on the market, and the use of these prescriptions is exploding. In addition, with so much television advertising, many consumers ask their doctors for expensive, brand name drugs when there may actually be a generic drug that works just as well.
Marmor, T. (2009). The obama administration's options for health care cost control: Hope versus reality. Annuals of Internal Medicine, 150(7), 485-489.
Toward the end of the 1990s, health care cost inflation began to decrease slowly after a steep increase in the early part of the decade. The patient population at that time hoped that various policies and programs implemented by government, employers, and insurers in the '90s that were put in place to control costs would continue to moderate the overall increases for the year to come. This was not the case and at this point in time rising health care costs have again become a major issue for patients seeking medical care. During the 2000’s the average annual health insurance premium in the private sector had a dramatic increase to $2,655 for single coverage and $6,772 for family coverage, an increase of 33.3 percent and 36.7 percent, respectively, since 1996, according to new data from the Medical Expenditure Panel Survey, conducted by the Agency for Healthcare Research and Quality (AHRQ, 2000).