According to recent news reports Mylan NV may have been paid over one billion more by Medicaid for EpiPen allergic-reaction treatments than it should have from 2006 to 2016. This is more than what Mylan NV said it agreed to pay to settle overcharging allegations. The company said in October to pay $465 million to resolve the allegations by the Justice Department that the company wrongly classified the EpiPen as a generic product and thereby didn’t have to provide as much of a rebate to Medicaid as it would have for a branded drug.
To date, there has been no settlement on the matter. In a two-page letter, the Office of Inspector General said that how much Medicaid was overbilled “has several important limitations” due to an absence of information about EpiPen’s lowest negotiated price because Mylan didn’t report that information to the Centers for Medicare and Medicaid Services.
Prescriptions for Mylan’s generic, which went on sale in December, have captured nearly 40% of the auto-injector market.
Jeffrey Newman represents whistleblowers.