The graph of epipen pricing over time at the bottom of the article is jaw dropping. "Did we get in trouble yet? No? Add another 10% then".
Only imaginary books on Amazon have price curves like that.
Looks perfectly reasonable to me. Captive market, zero competition, reasonably fixed demand, and (best of all) disconnect between the person making the purchasing decisions and the one actually footing the bill.
This is the healthcare system our elected representatives have created for us. Either embrace it (which I guess means investing in an overweight portfolio of pharma companies) or send them a message to correct the core of the problem.
This reminds me of Martin Shkreli congress hearing [1]. A case of politicians blaming others for their own bad decisions.
They are talking about impoverished women with AIDS in Africa - and the drug company only has a license for the US, the drug itself has nothing to do with AIDS, and is free for half the patients and a $20 co-pay for the other half.
Your insurer isn't an endowment, it isn't a charity. Notwithstanding a few percent ROI on investing premiums, the only person paying these four digits is you. Or your employer. It's just amortized and spread among a group.
"It's not that bad, it's really only $20" is the big trick here. A much higher amount is being billed, and paid, even after negotiation. It's not coming from a magic money fairy.
https://2.bp.blogspot.com/-cs_lbJiHVkQ/VxV92flRB1I/AAAAAAAAK...
This past year list prices have gone up 12.4%, but companies only capture 2.8% of that. Which is about inflation.
Where is that other money going? You may want to ask your insurance company.
The second page goes into detail about the rebates and discounts given to pharmacy benefit managers which partially explains the list price increases.
Article: http://www.forbes.com/sites/matthewherper/2016/08/30/the-con...
I don't know the details, but I do know my sister always carried two for her eldest (past tense because he's now in college and presumably carrying them himself now).
Medic units, that have trained personnel, that have all the equipment to draw up Epi from a $3 vial themselves, who are already on scene.
This leads to my county alone having to throw away $130,000/yr of EpiPens that don't get used before they expire. Because the state legislates that we're required to carry them.