The topic of EpiPen was brought up in class (Jan 25). I had the opportunity to do critical analysis on Mylan Pharmaceuticals over the 16 weeks last semester, and I wanted to offer a brief overview of the widely criticized pricing issue.
A key insight to the problem is similar to what was suggested in the Steven Brill article - middlemen are responsible for the high costs of healthcare. Eliminate the middlemen and Healthcare would become inexpensive.
Mylan had the same challenge with EpiPen. Though the marked price by Mylan was just $274 per pack, customers had the pay more than twice that amount because of all the middlemen costs involved. Mylan has overcome this challenge by eliminating the middlemen, and offering the EpiPen directly at the $300 list price to consumers.
Take a simple breakdown of the pricing issue below. Middlemen are the cause of expensive US Healthcare System. Eliminating them is key to reducing the costs. Do ponder over it and feel free to comment. I'll add interesting perspectives from time to time on this topic.
- Ben.
It's hard to see how Mylan is helping to reduce costs so that those who need it are able to afford it. I do like the supply chain view of where costs are added. This would be a great grad presentation, if you found other examples of how the supply chain works in more detail. Companies that are really reducing costs would be a great example. I'll find a video that speaks to this directly.
ReplyDeleteNice information and positive thinking energy.
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