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Mylan was overcharging Medicaid for EpiPen for years

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Staff Writer | October 6, 2016
Mylan did overcharge Medicaid for EpiPen for years, two congressional investigators say and the company could face a $400 million-plus liability for unpaid rebates.
Pharma   Mylan is facing $400m-plus in back rebates
ith penalties of $100,000 per infraction under Medicaid rules, that may be even more. The liability estimates follow a new letter from the Centers for Medicare and Medicaid Services that put some numbers to questions about EpiPen spending and rebates.

Medicaid has spent nearly $800 million on EpiPen since 2011, or $960 million less rebates, and those rebates were lower than they should have been, the agency wrote.

Mylan had classified the product as a generic drug, which are subject to 13% rebates; instead, EpiPen should have been on the hook for 23.1% rebates as a branded drug, plus additional paybacks for inflation-beating price hikes.

Overall, CMS laid out almost $1.3 billion on EpiPens for Medicare and Medicaid patients from 2011 to 2015, the agency said. Spending on the product grew to $487 million in 2015 from $86 million in 2011, before rebates.