HHS: Taxpayers May Have Overpaid $1.27 Billion For EpiPens – Consumerist
Harvey’s Blog is proud to announce a new nominee for the Globby Award recognizing excellence in the pursuit of profits.
BigPharma seems to have an unfair advantage when it comes to hogging the Globby nominations. These BigCorps put competitors to shame with their monopolistic powers and their talents at finding sweet ways of milking Medicaid & Medicare. So today’s nominee is pharmaceutical giant, Mylan
With Mylan, it was like shooting bees in a barrel. Got a deadly allergy to bee stings? There’s nothing like a six-fold increase in epipen pricing to juice up the corporate bank account and fatten the CEO’s pay packet. Woo hoo! Let the goods times roll. Last September, Mylan CEO Heather Bresch was called before Congress to explain why EpiPen’s price had soared from about $103.50 in 2009 to more than $608.61 in 2016.
Her answer? Free market, baby. Unfettered capitalism. Nothing wrong with that. But wait…
Everything is not all it appears to be in the La-La Land of the Free Market where Adam Smith’s ghost chases the phantom of Ayn Rand, randy old buggers. It seems our forthright corporate citizen, Mylan was well, um, less than forthright. Never mind, it all turned out well in the end. The company scammed Medicaid, settled out of court with the Justice Dept, and got to keep as much loot in their own pockets as they paid out in fines! Not bad, all things being considered. Well done, Mylan! You’re a deserving nominee.
Although drug company Mylan agreed to pay $465 million to settle a Justice Department investigation into allegations that it deliberately overcharged Medicaid for its EpiPen emergency allergy injector, a new report from the Department of Health and Human Services indicates that taxpayers may have overpaid more than twice that amount over ten years.
Mylan is a shining star in the BigCorp firmament. A fine example where BigCorps get away with fraud but no one goes to jail. Paying fines is just one of many factors in the overall risk/reward equation for BigCorps.
What if you had tried to defraud Medicaid? Would you have paid just a fine? Would you get to keep half the profits? I don’t recommend trying this. You’re not a BigCorp!
In A Survivor’s Guide To Working At A Big Corporation, I discuss the risks to your survival associated with this kind of rogue company behavior. But on the other hand, being a whistleblower might work out in your favor. Get the Survivor’s Guide and learn about all the pros & cons.
With Mylan, the pros at the top sure pulled off this con, bigly! Well done!