Dive Brief:
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Cigna will not provide coverage for the brand name version of the Mylan EpiPen in 2017, but will offer coverage for a generic version launched in December 2016, CNN Money reported.
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The cost of the brand name Mylan EpiPen had become the subject of much controversy after the price for a two-pack increased more than 500% to more than $600 over the last six years.
- In another blow to Mylan, CVS Health announced it would offer a generic alternative with a price tag more than one-half lower than that for the generic option developed by Mylan.
Dive Insight:
The blows keep coming for Mylan. The pharmaceutical company was confronted with allegations through much of last year over price gouging due to rapidly rising costs for its EpiPen, an epinephrine autoinjector.
As Mylan rapidly increased prices on its EpiPen, consumers and regulators took notice. An online petition that garnered more than 121,000 signatures in 45 days last year called on Congress to address alleged price gouging by Mylan. The pharmaceutical company later announced it would pay $465 in a Medicaid rebate settlement.
Competitors also took notice. Mylan unveiled a lower cost generic version of the EpiPen in December, but even cheaper versions have since hit the market. CVS Health announced it would sell a generic epinephrine pen at a cost of a little more than $100 for a two-pack. Also, investors appear to be souring on Mylan since the controversy erupted last year. Mylan shares were down by 4.3% after the Cigna announcement, according to CNN Money.
High drug prices hikers have been impeding hospitals' ability to manage their budgets over the past few years. But there are strategies hospitals can use to mitigate the impact of the increases as well as policy changes that could address the issue long-term.