Mylan May Have Overcharged US For EpiPen By $1.27 Billion

Mylan May Have Overcharged US For EpiPen By $1.27 Billion

Mylan May Have Overcharged US For EpiPen By $1.27 Billion

The Department of Health and Human Services announced the discrepancy in a letter to Sen.

Mylan (MYL) officials have offered to meet with Senate Judiciary Committee Chairman Charles Grassley, R-Iowa, on Wednesday, June 7, after the lawmaker threatened to subpoena the company for documents pertaining to the company's participation in a federal rebate program for Medicaid patients using the company's EpiPen allergy treatment.

Last fall, among rising concerns about Medicaid fraud, the Acting Administrator for the Center for Medicare & Medicaid Services (CMS), confirmed that Mylan had indeed mis-classified EpiPen as a NIMS drug and had been paying rebates that were at least ten percentage points smaller than what the company should have paid, since at least 2011. Taxpayers ended up with a bigger bill.

In October, Mylan agreed to pay $465 million to settle Department of Justice allegations that it falsely classified EpiPen to overcharge Medicaid.

"It looks like Mylan overcharged the taxpayers for years with the knowledge EpiPen was misclassified, and the previous administration was willing to let the company off the hook", Grassley said in a statement.

The amount is almost three times a proposed settlement that the company announced in October. Medicaid is the joint federal-state program that provides health-care coverage to primarily low-income Americans. "Mylan and the Obama administration reportedly were close to settling the overpayment for much less than $1.27 billion", he said in a press release.

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Mr. Grassley said it was alarming that taxpayers were almost cheated out of hundreds of millions.

Mylan continues to work with the government to finalize the settlement, a company spokesperson said in response to a request for comment Thursday. The pens are epinephrine autoinjectors used to combat anaphylaxis, a serious and sometimes life-threatening allergic reaction.

"Mylan has historically classified EpiPen as a generic for purposes of the Medicaid Drug Rebate Program".

Mylan raised the ire of the public past year when it raised the cost of the EpiPen from $100 for a two-pack dose to $600.

Coury's pay for 2016 included a $1.6 million salary, $20 million bonus, $50.8 million in stock awards and $22.7 million in "other compensation" that was mostly linked to his transition to the new role.

The funds claim control of about 4.3 million Mylan shares. "Because Best Price was not available, we could perform only one of the two calculations for determining the basic rebate amount". But the company in March refused to say whether it was going through with that plan.

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