Clinton Offers Plan To Prevent 'Excessive' Drug Price Hikes

But misguided calls for heavy-handed price controls won't solve the bigger issues, which include the government's many barriers to bringing generic products - produced here or overseas - to the Amercian market. "Since there is no apparent justification in this case, I am calling on Mylan to immediately reduce the price of EpiPens", Clinton said in a statement. "In addition, it could create an unsafe situation for patients as people, untrained in medical procedures, are incentivized to make their own kits from raw materials".

At the same time, customers having allergic reactions to bee stings or peanuts walk into Mylan's offices.

Enter the generic version. Because of epinephrine's short shelf-life, EpiPen packs must be replaced annually. Although businesses frequently are in hot water for prices that are high, these do not typically reflect the true prices that the insurance companies or the majority of patients actually pay due to rebates that remain secret.

"Since at least 1997, EpiPen may have been incorrectly designated by relevant pharmaceutical companies as a generic in the Medicaid program, despite being considered a brand-name drug by the Food and Drug Administration and Medicare", Senator Ron Wyden (D-Ore.) and Representative Frank Pallone of New Jersey, wrote in a letter today to the US Department of Health and Human Services.

The entire system of prescription drug distribution and sales needs reform. "Balancing the cost of developing lifesaving medications with the need to make available affordable prescription drugs to consumers has always been a hard task", the senator said in a statement when the legislation was announced. Generic drugs are subject to a much lower 13 percent rebate. The body wouldn't officially be able to set prices on long-available drugs, but its ability to slap a financial penalty on the next company that jacks up the cost of a 20-year-old medical implement or pill would come pretty darn close. By 2015, the most recent period for full-year results, the company earned $4.30, or a jump of 49 percent.

Mylan has realized it had a captive market that would pay anything to get the drug.

Clinton also suggests a potential fine for drug companies who are found to have unjustly risen costs.

She said she will work on possible legislative solutions. "Yet we've heard from people who have to choose between EpiPens for their children or school supplies, or they just go without because they just can't afford it", noted Lisa Gill, deputy editor for CR Best Buy Drugs.

Hillary Clinton, Democratic presidential nominee, introduced a new plan to address the "unjustified" price increases on life-savings drugs that have become commonplace among some drug makers over the past few years.

An "unjustified", outlier price increase would be based on three criteria, including the trajectory of the price increase, cost of production and value to patients. When that line is crossed into territory deemed price gouging, the group could them place fines or allow the importing of drugs that are similar. Mylan's cheaper offering is meant to get Congress off the company's back, and is "a shrewd business move" from a firm that lowered its tax bill by moving its corporate address from the U.S.to the Netherlands in 2015.

"By directing the government to take swift action against unfair and monopolistic business practices, the Clinton plan helps both seniors and taxpayers", said Richard Fiesta the executive director of the Alliance for Retired Americans in a statement.

"EpiPens are a ideal example of a health-care nightmare", said Aaron Carroll at The New York Times. The interests of consumers seem to be last on the list of priorities.

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