Posted by Michael Wonder on 07 Oct 2016
Mylan accused by U.S. of overcharging Medicaid for EpiPen
6 October 2016 - Mylan has been overcharging the U.S. for years on its EpiPen allergy shot, a government agency said, as two lawmakers accused the drugmaker of “bilking” taxpayers.
The government’s allegations, disclosed in a letter from the Centers for Medicare and Medicaid Services Wednesday afternoon, added to Mylan’s woes over EpiPen’s rising prices. Analysts estimate the company may have made hundreds of millions by misclassifying the device under complex Medicaid pricing rules. If it turns out the allergy pen was wrongly classified as a generic drug -- enabling Mylan to pay a lower rebate rate than Medicaid requires for brand-name drugs -- it could be costly for the company.
