Mylan school contracts for EpiPens under probe by NY AG

Mylan, the maker of the EpiPen, is facing more public backlash after the New York attorney general announced an investigation into the company's contracts with schools. Eric Schneiderman's office is investigating Mylan over “potentially anticompetitive terms” in its sales contracts with school systems in the state. Such terms were discovered in a preliminary review by the attorney general's office, according to a news release. Mylan distributes EpiPens free of charge to more than 65,000 schools nationally. In a statement, Mylan acknowledged that it had previously put a “limited purchase restriction” on schools that wanted to purchase more than the free supply they were allotted, but it no longer exists. The statement also said the program “continues to adhere to all applicable laws and regulations.” A spokeswoman didn't respond when asked what that restriction entailed, but medical news site STAT reported last month that Mylan's previous agreement required that schools agree to “not in the next 12 months purchase any products that are competitive to EpiPen Auto-Injectors.” A Mylan spokesperson told STAT last month that the requirement had been dropped but didn't specify when.

—Adam Rubenfire

The American Medical Association has called on a New York state regulator to reject Anthem and Cigna's proposed $53 billion merger over concerns it will stifle insurance competition and lead to more costly, lower quality healthcare across the state. “If Anthem gets its way, it will have even less incentive than it does now to take care of people, and the merger would ultimately compromise the ability of physicians to advocate for their patients,” said Dr. Malcolm Reid, president of the Medical Society of the State of New York said at a New York Department of Financial Services hearing. Reed also noted that the lack of insurer competition has negatively affected physicians and providers, who feel they have no choice but to join large health systems rather than struggle to negotiate reimbursement rates with powerful insurance giants. According to an AMA analysis presented to state regulators, the Anthem-Cigna merger would give the new insurance behemoth anticompetitive market power in Long Island and there are significant concerns about its concentration in the New York City and Hudson Valley markets. Anthem and Cigna argue the merger will create new efficiencies that will lead to cost savings.

—Erica Teichert