Thursday's health stories

Mylan and Sun Pharmaceutical sued for alleged price gouging
Mylan's price-gouging problems now may reach beyond the EpiPen. A new lawsuit filed Thursday by the Self-Insured Schools of California accuses Mylan and Sun Pharmaceutical Industries of conspiring to jack up the price of their albuterol sulfate tablets — generic prescription pills that help people with asthma and other acute respiratory conditions. A union in New York filed a similar lawsuit earlier this year.
The key lines from the lawsuit: From December 2012 to December 2013, "The average retail price of the 2 mg pills increased over 1,000% for Mylan (from $0.17 to $5.55) and Sun (from $0.30 to $4.42)...such massive price increases are extremely atypical and cannot be explained by traditional market forces" and instead "were the product of collusion."Neither company replied to questions.
Why this matters: Most drug-pricing scandals have centered around brand-name drugs, but the prices of cheap generic drugs have also escalated heavily over the past several years and caught the attention of Congress. Read the latest lawsuit against Mylan and Sun here and here.

The largest health care subsidy: employer coverage
Sen. Orrin Hatch controversially said this week that repealing the Affordable Care Act subsidies and Medicaid expansion is difficult because once you get people "on the dole, they'll take every dime they can."
Reality check: Nearly every American benefits from subsidized health insurance, not just those who gained coverage under the ACA. The largest health care subsidy is the same one that Hatch and millions of others take advantage of: the tax break for employer-based coverage.

Aetna exits ACA marketplaces
Aetna is withdrawing its individual-market health plans that are sold on and off the Affordable Care Act exchanges in Delaware and Nebraska, the health insurance company said late Wednesday. Aetna has basically given up on the entire individual market after losing roughly $900 million on ACA plans since 2014.
However, Healthinsurance.org shows that Aetna will sell ACA plans in Nevada next year. An Aetna spokesman said the company would not comment on Nevada at this time.
Aetna's decision is not surprising: Aetna exited several marketplaces last year, including many where Aetna was profitable, in the hopes of gaining leverage over the federal government for its proposed acquisition of Humana. Aetna's departure also won't cripple the exchanges, since other insurers exist where it has left.

