Cigna Drops EpiPen Coverage, CVS Health Announces Cheaper Generic

Health insurer Cigna recently announced it will no longer cover the high-priced branded version of the EpiPen (epinephrine auto injector; Mylan), and will instead only cover the recently launched, lower-priced generic versions.

“The generic version, available now in pharmacies, has the same drug formulation and device functionality as the branded medication, but at a substantial cost savings,” Cigna spokeswoman Karen Eldred told CNN Money.

Cigna covers approximately 15 million beneficiaries, and is the first major health insurer company to retaliate against Mylan’s price increases. Cigna said it will insist on giving prior authorization to an EpiPen competitor, Adrenaclick (epinephrine injection, USP, Amedra Pharmaceuticals)—which recently became available at the nation’s largest drug store chain, CVS Health. Cigna’s stance is in line with recent Medicaid policy, which requires prior authorization for the branded version of the EpiPen, in three states.

Meanwhile, CVS Health recently announced it would supply the generic version of Mylan’s EpiPen, Adrenaclick, for $109.99 per two-pack before potential discounts, or about one-sixth the initial $600 list price for the brand name product. 

The recent decision by CVS also comes at a time of increase scrutiny over the role of pharmacy benefit managers (PBMs), such as the CVS Caremark unit, which is said to have contributed to EpiPen price increases. A recent congressional hearing was recently called to determine how PBMs have contributed to the increasing drug prices. Additionally, tensions between PBMs and drug companies continue to grow as they continue to trade blame over the issue.

Notably, while facing competition from generic autoinjectors like the Adrenaclick, Mylan announced it will begin offering savings cards for patients who have to pay full price. Mylan currently also produces its own generic version of the Epipen at a cost of $300 per two-pack.

—Julie Gould (Mazurkiewicz)