Exciting news for those who’ve been affected by EpiPen price hikes! A single payment of $1,000 is on its way, as part of a massive $609 million settlement. Could you be eligible? EpiPens are lifesavers for people experiencing severe allergic reactions, providing a quick injection of epinephrine. But they’ve been at the center of a lawsuit, involving medical groups Pfizer, Meridian Medical Technologies, King Pharmaceuticals, and Mylan.
These companies were accused of conspiring to maintain their monopoly on EpiPen prescriptions. The alleged scheme involved giving rebates to insurers and Medicaid plans that didn’t cover less expensive competitor medications, causing EpiPen’s price to surge from $100 to $600 in under a decade. While the accused companies didn’t admit any guilt, they’ve decided to resolve the class action suit with a whopping $609 million in settlement payments, according to Top Class Actions.
If you purchased EpiPen you may be eligible for the $1000 payment
If you or your entity paid for or reimbursed an EpiPen for yourself, your family, insureds, plan participants, employees, or beneficiaries between August 24, 2011, and November 1, 2020, you might be in line for some cash. The amount you could receive depends on how much you paid for the EpiPen. Payments have already started going out, with one claimant bagging a hefty $3,780 from the settlement.
Other recipients have received various amounts, ranging from $538.23 to $1,157.20. Meanwhile, if you’re a Pennsylvania resident, you could be looking at an additional windfall. Starting July 1, the state’s Property Tax/Rent Rebate Program will kick off payments to eligible residents. This program aims to provide relief of up to $975 each to low-income elderly or disabled residents.
To qualify, you must be 65 or older, a widower or widow aged 50 or older, or an 18 or older resident with a disability. Income limits also apply, with $35,000 a year for homeowners and $15,000 for renters. But here’s the good news – half of your Social Security income is excluded when calculating your income.
Expect your rebate to be mailed or directly deposited into your account within four to six weeks. So keep an eye on your mailbox or bank account – payments ranging from $1,250 to $2,500 are going out in just a few days.
The EpiPen lawsuit details are as follows:
The lawsuit began after the drugmaker Mylan (now known as Viatris) raised the price of a pack of two EpiPens from $100 to $608 in 2016. This increase in price led to allegations of an illegal scheme to monopolize the market for EpiPens.
Viatris, the manufacturer of EpiPens, has agreed to settle the class-action lawsuit for $264 million. This settlement is subject to approval by a judge. In addition to the settlement with Viatris, Pfizer and its subsidiaries settled their part of the lawsuit for $345 million. Both companies deny any wrongdoing. The settlement fund of $345 million will be distributed among various parties, including consumers, health insurance companies, and other third-party payers. Individual consumer complaints represent only 20% of the claims, and the remaining 80% will go to third-party payers.
Consumers who paid for EpiPens between August 24, 2011, and November 1, 2020, are eligible to file a claim for compensation. The exact amount of compensation per individual is yet to be determined but may range up to a couple of hundred dollars each. The EpiPen lawsuit is separate from a previous settlement in which Mylan agreed to pay $465 million to resolve claims by the U.S. government that it overcharged Medicaid for the treatment.
In summary, the EpiPen lawsuit involves allegations of an illegal scheme to monopolize the market for EpiPens, resulting in a significant price increase. Viatris has agreed to settle the class-action lawsuit for $264 million, and Pfizer and its subsidiaries have settled for $345 million. The settlement funds will be distributed among consumers, health insurance companies, and third-party payers. Attorneys’ fees amounting to $115 million will also be awarded. Eligible consumers who paid for EpiPens during a specific period can file a claim for compensation. The settlement will end consumer and insurer litigation related to the pricing of EpiPens. The settlement is still pending judge approval, and further details about the distribution of funds and the claims process are expected to be provided.