Mylan CEO: "The US Healthcare System Bubble Is Going To Burst; This Is No Different Than The Subprime Crisis"

Tyler Durden's picture

As noted earlier, following a feverish push by Congress and Hillary Clinton to scapegoat Mylan, and its CEO, Heather Bresch, as "greedy" examples of corporatism (even though it is not Mylan's fault it is a de facto monopoly and thus has unlimited pricing ability), the EpiPen maker on Thursday announced plans to boost access to its EpiPen Auto-Injector by expanding already existing programs for patients who are facing higher out-of-pocket costs. The company is reducing the cost of EpiPens through the use of a savings card which will cover up to $300 for the EpiPen 2-Pak.

"We recognize the significant burden on patients from continued, rising insurance premiums and being forced increasingly to pay the full list price for medicines at the pharmacy counter," Bresch said in a statement. "Patients deserve increased price transparency and affordable care, particularly as the system shifts significant costs to them."

Bresch - whose compensation has increased by 671% from $2.5 million in 2007 to $18.9 million in 2015 - then appeared on CNBC where she took her defence to the public. Here, she correctly noted that while corporate profitability is an issue, and Mylan's price hikes most certainly are not limited only to EpiPen... 

 

... price is only one part of the problem that Mylan is addressing according to its CEO. "All involved must also take steps to help meaningfully address the U.S. health care crisis," she said, "and we are committed to do our part to drive change in collaboration with policymakers, payors, patients and health care professionals."

In other words, the company is at fault, but so is the system.

Bresch told CNBC that the healthcare system is in crisis, causing the patient to pay for full retail prices at the drug counter and rising premiums on their health insurance, noting that "only in healthcare" you could have paid $25 yesterday at a pharmacy counter one day and up are paying $600, $1000, $2000 the next day.

"No one's more frustrated than me," she said, and then she made a stark warning going to the heart of the problem: stating just how broken the US healthcare system - which allowed Mylan to charge as much as it did in the first place - truly is:

"My frustration is, the list price is $608. There is a system. I laid out that there are four or five hands that the product touches, and companies that it goes through before it ever gets to that patient at the counter. Everyone should be frustrated. I'm hoping that this is an inflection point for this country. Our healthcare is in a crisis, it's no different than the mortgage financial crisis back in 2007. This bubble is going to burst."

Which, incidentally, is what we expected yesterday would happen: having been attacked by the same government whose regulations allowed her to charge as much as she does for Mylan drugs, she did the only rational thing possible: take the fight to where it should be waged, namely in Congress.

At the end of the day, the truth is inbetween: there is corporate greed which is ultimately capitalism's fundamental profit motive, and then there is Congress, which is happy to collect hundreds of millions in lobby funding from the pharma industry, which generated unprecedented returns on its bribes to politicians.

 

Today's crackdown on Mylan may have kicked the can, but absolutely nothing has been fixed, which is why Bresch is absolutely right: sooner or later the bubble will burst, but until then it will be covered by the only way the US government knows: with even more debt.

Her full interview with CNBS is below, and the key segment is 3:40 mins in.

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nightwish's picture

As long as Obozos legacy bursts along with that bubble, im all for it

Looney's picture

 

This cunt’s opinion is as “valuable” as Michael Shkreli’s.

Looney

Ghost of PartysOver's picture

Ain't nutt'n gonna change until it all goes boom.

JRobby's picture

Corruption

Corruption

Corruption

Corruption

nmewn's picture

"Drive change"...lol...holy crap she goes to the same useless management seminars as every other CEO.

Clearly I'm in the wrong business  ;-)

BurningFuld's picture

Epi pen do it yourself:

http://www.buyemp.com/product/epinephrine-ampule   Cost $5.00

Needle and syringe from Pharmacy Cost $0.25

Youtube video on how to administer injection. Priceless

 

scraping_by's picture

Nowhere in all that knowledge is the panic of watching your kid not breathing. Nah, the technology's just what people need. But commercial medicine isn't health care, it's a racket.

Bendromeda Strain's picture

People better learn how to operate under pressure in a lot of situations or they are going to be culled anyway.

Delving Eye's picture

Aha!

What I learned on Zero Hedge today: Tyler Durden is British! To wit, notice the British spelling of defense, below.

"Bresch - whose compensation has increased by 671% from $2.5 million in 2007 to $18.9 million in 2015 - then appeared on CNBC where she took her defence to the public"

So, Tyler ... are you actually Julian Assange?? Please say yes. Please say yes. Please say yes.

Buckaroo Banzai's picture

You posted a bad link, here is the good link: http://www.buyemp.com/product/epinephrine-ampule

"This item requires a Prescription Drug Authorization Form"

Oops.

philipat's picture

Somebody should ask her what is the COGS and Gross Margin of the drug in the US at present price levels. She would never answer the question (Too embarassing with Gross Margins at 90%+) but the obfuscation would be fun to watch...

AllBentOutOfShape's picture

Come one, just because Bresch's daddy is US Senator Joe Manchin, and Bresch was the chief lobbyist for Mylan before becoming CEO and succeeded in getting a bill signed into law that required all public schools to carry EpiPens, doesn't necessarily mean there's any 'corruption' going on here.

 

http://usuncut.com/class-war/epipen-taxpayer-money/

Yen Cross's picture

  That lying bitch needs to be thrown into a dull wood chipper.

Government needs you to pay taxes's picture

This.  Those who scalp Americans and bribe politicians for obscene personal compensation MUST receive judgement.  There is no functional rule of law in Murrica.  So a dull woodchipper, a tall tree, a lamppost . . . all these must serve for administering discipline and correction. 

CheapBastard's picture

"If you want to keep your strong economy and low prices, you can keep your strong economy and low prices. I promise!"

 

 

mtl4's picture

Subprime crisis my arse, blocking approvals and hiding behind expiring patents smacks of crony capitalism my friend.

strangewalk's picture

Guillotines are better. What is going on here with medical care is beyond treasonous, criminal and a disgrace to civilization, it is the stuff of CIVIL WAR.  

Broken leg simple fracture total cost US: $80,000, India, Thailand or Mexico (ITM): $500

Open heart surgery US: $200,000-One Million, ITM: $5000-$7000

Appendectomy US: $120,000, ITM: $700

My uninsured friend flew his wife to Guadalajara, MX for a surgical procedure, saved $100,000, and told me the hospital was just as clean and modern, the doctors and nurses just as professional, and the care even better than in the US. 

Refuse-Resist's picture

What other industry can put you 3x median income with a  2 year CC degree?

Medical industry! FUCK YEAH!

Condition 1SQ's picture

And this exemplifies why the US is destined to become a footnote, shortly.

JRobby's picture

It is so wide spread, down to the lowest levels from the highest. It has been ingrained in the culture through poor education, low pay and most of all the media.

Bastille Day's picture

Yes but with a $19 million/yr salary, no one is more frustrated than her.  

GoldRulesPaperDrools's picture

I like it!  But I'd say make sure the chipper is running at 50% speed plus the dull blades ... make the experience last! ;)

RafterManFMJ's picture

...and feet first. Livestream it!

economessed's picture

Yen Cross -- quadruple upvotes for the appropriate reminder that we need to utilize wood chippers to dispose of our corrupt political and ruling elite.  I unequovically guarantee that if we setup a woodchipper on the National Mall, and fed three politicians feet first through the wood chipper, spraying their bloody bits onto the ground for crows and sea gulls to clean up, the entire system would reform itself before we put the fourth one through.  To be fair and thorough, we had better pick one person from the executive branch, one from congress, and one from the media to make our point.  Live-stream it all, and create a plethora of internet meme's while we're at it.  Until that happens, nothing will change.

AllBentOutOfShape's picture

I prefer an ISIS beheading with a dull rounded butter knife.

StychoKiller's picture

Ya wanna know WHY the Pentagon pays $700+ for a $15 hammer?  It's the two-foot high stack of paper demanded by the Govt to PROVE it's a $15 hammer!

2ndamendment's picture

Not sure who Michael is, but am familiar with the guy named Martin. :)   /jk/

 

https://en.wikipedia.org/wiki/Martin_Shkreli

Crash Overide's picture

"My frustration is, the list price is $608. There is a system. I laid out that there are four or five hands that the product touches, and companies that it goes through before it ever gets to that patient at the counter.

 

There is a little truth to that, there are a lot of taxes, fees, insurance, permits, inspections, distribution, licenses, etc... that are associated with the cost of doing business that get passed along to the customer. I am not sticking up for her or the company but rather pointing out another example of how our current "system" continues to fuck the little guy over.

 


GoldRulesPaperDrools's picture

And do you think that all of those costs went up 600% with the price of the pens?  Nah, didn't think so ...

Cognitive Dissonance's picture

I couldn't stomach more than a minute of the video. So much spin, so little patience. She says they increased awareness by double. Which means they doubled sales. When she got to the point where she was talking about the poor school boy who died in the school yard because no Epipen was avalible I shut it down.

Winston Churchill's picture

"The unacceptable face of capitalism".

It was coined fror asset stripper Slater Walker, but seems more appropos here.

I', really torn about health care businesses.While I believe in totally unregulated free trade,

these greedy assholes fuck it up for everybody.

11b40's picture

Capitalism is based on competition. Where are the competitors?

Kaiser Sousa's picture

i been tellin ya'll for almost 7 years...

until "the people" start deadin these sociopaths NOTHING WILL CHANGE.....

that bitch needs to be kilt.

Son of Loki's picture

I feel for people who have these allergic reactions and their life depends on this drug since like most, it becomes a political football and no one but the patient gets screwed.

The Ram's picture

Unless you have a true medical emergency, don't use the system. I would never take their chemo or radiation therapy. I Keep myself heathy with herbs and good food, clean living and I am doing very well. This crisis is an opportunity to see the medical system for the sham that it has become. We can all become healthy and avoid their over priced poison. Empower yourself to research and become your own Heath care pro. People have been in the dark for decades

Friedrich not Salma's picture

"Hard to accept that these imbeciles represent the people in our government,"
-Shkreli

He moved up a few pegs with that one.

Dark Daze's picture

He's simply trying to stay out of prison now that his lawyer has helped him realize he is one of the most reviled people on the planet. He hasn't changed. Dirty, filthy, money grubbing jews never change. 

RaceToTheBottom's picture

Basically:  My monopolist position in the Market allows me to charge whatever I choose, and therefore it is the governments fault.

Stupid Bankster wench

Freddie's picture

Wasn't Mylan bought by Teva?   Teva tricks and dishonesty in looting patents and other things show they are a Sors-like tribe outfit.  Scum.

BennyBoy's picture

She's sincerely sorry...that she's in the spotlight.

a Smudge by any other name's picture

It's MORE VALUABLE. This one happens to be destructive to the managed care system itself. That makes her a weapon. Best we can do is keep her talking.

The real "cure" here is we angle this into a test of Title 15 USC. Esp. the parts about monopoliy, antitrust and restraint of trade. THAT IS THE BLACK LETTER LAW THAT CAN FIX THIS.

 

ConnectingTheDots's picture

Yes Heather Bresch, the system will crash BECAUSE of people like you. However, you will walk away with your $12 million raise you gave yourself, and the "little people" (think Leona Helmsley) will be left holding the bag. You will one day meet your maker, and what excuse will you give when asked about all the "little people" you screwed over? I do not think "profits" will work wll for you as an explanation.  

Consuelo's picture

 

 

 It will.   Of that you can rest assured.   And there won't be another one in the Oral Office for at least a generation, if not 50 years.   

OutaTime43's picture

You realize this has been going on for at least a couple of decades right?   It's also the main reason why insurance premiums are rising. Since they pay the brunt with full contracted prices, then it gets passed down. Same thing happens with medical care. The fully insured pay for the underinsured.   Since we all pay for it anyway, then why not get rid of the 20 cents of profit per premuium dollar passed onto health insurance company shareholders and make it an all pay via taxes system.  The costs will definately be controlled then because everyone will see it in their taxes.  The value of care is just as good in Canada, UK , France etc.  In fact ,many Americans who are paying cash go to these countries anyway because the costs are somewhat regulated. 

More Ammo's picture

"Health Insurance" is a euphemism for "Medical Racketeering"

 

I will never use the term again.

http://market-ticker.org/akcs-www?post=231480

Captain Chlamydia's picture

The Americans are THE MOST OBESE PEOPLE on this PLANET, there are even more people OBESE than that there are people with a normal weight. 

The American Healthcare Bubble is going to burst because the skin of people cannot stretch enough to accomodate their FAT. 

Obese diabetic ignorant people will determine which sub-intellectual idiot becomes POTUS in a few weeks time. 

This is Americans:  https://www.youtube.com/watch?v=XaPzN2gD3PQ