Epipen Controversy

Decent Essays
Government is known to utilize a product's elasticity measures to set taxes and subsidies for products goods and services. With medical products there will always be a demand because the money isn’t in the cure it’s in the medicine. When I first started looking at this assignment I immediately began to think about the recent EpiPen controversy. More than 100 years ago, Parke-Davis — one of the largest pharmaceutical companies at the time — started marketing Epinephrine under the brand name Adrenalin. The development of the auto-injector in the 1970s with a predetermined dose was a breakthrough because epinephrine must be delivered quickly, and in the proper amounts to work. People suffering severe allergic reactions often treat themselves.…show more content…
This meant it could exercise its government monopoly when it bought the drug and device from Merck and started marketing the EpiPen in 2007. Many auto injectors have come and gone but Mylan has cornered the market here in the U.S. Mylan truly became synonymous with the Epiepen when when President Barack Obama signed a bill in 2013 incentivizing schools to stock epinephrine, it was called the "EpiPen Law." Mylan lobbied heavily for that bill yet according to Mylans CEO Heather Bresch a broken health system that has let deductibles and copays skyrocket on many insurance policies. If deductibles had stayed low, parents and other EpiPen users probably wouldn’t have noticed that Mylan had increased the price of a two-injector set from around $100 seven years ago to more than $600 this spring. The Medical Device Excise Tax Section 4191 of the Internal Revenue Code imposes an excise tax on the sale of certain medical devices by the manufacturer or importer of the device. On Dec. 5, 2012, the IRS and the Department of the Treasury issued final regulations on the new 2.3-percent medical device excise tax (IRC §4191) that manufacturers and importers began to pay on their sales of certain medical devices starting in
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