Morning Briefing
Summaries of health policy coverage from major news organizations
Consumers Sue Mylan Claiming Company 'Gamed The System' In Order To Boost EpiPen Sales
Stat: Mylan Sued By Consumers Claiming PBM Rebates Are Kickbacks
Three consumers filed a lawsuit accusing Mylan Pharmaceuticals of paying kickbacks to pharmacy benefits managers in order to boost EpiPen sales, which caused them to unfairly overpay for the allergy-reaction device that has been at the center of the national debate over the high cost of medicines. Their allegations take aim at the convoluted interplay between drug makers and pharmacy benefit managers, which are middlemen that negotiate favorable insurance coverage for medicines on behalf of insurers. The PBMs attempt to extract the best prices from drug makers and, for their trouble receive rebates, some of which are held back as fees. (Silverman, 4/3)
The Wall Street Journal: Mylan Hit With Lawsuit Alleging It Overcharged EpiPen Patients
The latest lawsuit alleged Mylan violated a federal racketeering statute and various states’ consumer-protection laws by raising the EpiPen’s list price to give a share of the proceeds to pharmacy-benefit managers, or PBMs, and ensure the device was available for sale to patients. PBMs manage pharmacy benefits for employers, and insurers and can influence which drugs are covered by placing them on preferred lists. (Rockoff, 4/3)
Reuters: Mylan Hit With New Class Action Lawsuit Over EpiPen Pricing
Although other lawsuits have been filed over EpiPen pricing, Monday's is the first to focus on the role of PBMs and to bring claims under the Racketeer Influenced and Corrupt Organizations Act, a federal law historically used against organized crime. (Pierson, 4/3)
