The recent hike in Mylan’s EpiPen may be linked to an incentive plan that ties executive pay to aggressive profit targets. The price of the EpiPen has doubled since the incentive plan was implemented in 2014, according to The Wall Street Journal. The incentive plan required a 16% compound annual earnings growth from 2014 to 2018.
The US Department of Health and Human Services is attempting to encourage additional insurers to enter the Affordable Care Act exchanges. They are proposing to make adjustments to account for insurer concerns about patients who are not enrolled for the full year, according to Kaiser Health News. They will also work with the IRS to contact patients who paid a penalty for not having health insurance, and provide information about how to gain coverage.
The federal government is now encouraging patients who are purchasing insurance in Affordable Care Act exchanges to choose a new, simple choice plan. The introduction of 6 standardized plan designs aims to eliminate moving parts that have troubled patients in the past, according to Kaiser Health News. Deductibles and out-of-pocket costs will be standardized for these simple choice plans.