Gov. Hochul signs legislation to cap out-of-pocket costs for EpiPen devices

The cost of epinephrine auto-injector devices, commonly known as "EpiPen" devices, is slated to become a little more affordable for families due to legislation recently signed into law in New York.

Governor Kathy Hochul has signed legislation to cut the out-of-pocket contribution required for the devices, with the new law requiring health insurers to cover EpiPens and caps the amount consumers will be required to pay out of pocket at $100.

"For people with severe allergies, immediate access to an EpiPen device can mean the difference between life and death," Governor Hochul said.

"When every second counts, the last thing New Yorkers should have to worry about is whether they can afford the medication they need to survive an anaphylactic reaction. By signing this bill, we are putting people over profit and giving New Yorkers peace of mind by ensuring equitable access to this lifesaving emergency treatment."

Epi-Pens have a relatively short shelf-life, expiring after 12 months on average, requiring those in need to purchase the medication repeatedly. Adding to their expense, users of Epi-Pens are also advised to carry two devices at all times, as a single dose of epinephrine may not be enough to treat a serious allergic reaction. Acquiring the devices requires a prescription from a healthcare provider. Due to the rising costs, many who are prescribed the auto-injectors, try to stretch out their supply by going beyond expiration dates or delaying picking up their prescriptions.

The potentially life saving devices rose sharply in cost over the last decade, due in large part to Martin Shkreli, a former pharmaceutical executive known as "Pharma Bro."

From 2007 to 2016 the average cost of the devices rose from $100 to over $600.

Shkreli, who was the CEO of Turing Pharmaceuticals, defended the Myland, the company that acquired EpiPen and the decision to raise the price "because the product is finally making money."

For his role in a large scale Ponzi scheme Shkreli was charged and convicted of two counts of securities fraud and Conspiracy to commit securities fraud. He was sentenced to seven years in prison and was paroled after six years and five months.

He was also ordered to pay $7.4 million in fines.

State officials say the legislation is in line with the "consistent efforts" of Hochul to "make health and human services more affordable in New York State."

"Governor Hochul has signed legislation to eliminate insulin cost-sharing for any New Yorker on a State-regulated health insurance plan, the most expansive prohibition against insulin cost-sharing in the nation, Governor Hochul has prioritized affordability for families and parents by investing $1.8 billion in child care in the past year alone. New York has also received a final commitment of $10 billion from the federal government to provide high-quality, affordable health insurance to approximately 1.5 million New Yorkers," state officials said.