US: EpiPen maker may have overcharged taxpayers by $1.27 billion

The amount detailed by the Health and Human Services Department’s inspector general is nearly three times the amount that Mylan acknowledged in negotiations with the Justice Department, which sought a settlement last year amid congressional uproar over the Pennsylvania-based drugmaker’s decision to hike the price of its twin-pack of EpiPens.

We’d love to be your preferred source for news.

Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

Add as Preferred Source

Mr. Grassley, a Republican and chairman of the Senate Judiciary Committee, said Mylan short-changed taxpayers by classifying its popular EpiPen as a generic instead of a brand-name product — a move that allowed it to pay smaller rebates to states under Medicaid, the government insurance program for the poor.

Manufacturers pay states a 23.1 percent rebate on brand-name drugs compared to 13 percent for generics. Mr. Grassley said it was alarming that taxpayers were nearly cheated out of hundreds of millions.

“The fact that the EpiPen overpayment is so much more than anyone discussed publicly should worry every taxpayer. Mylan and the Obama administration reportedly were close to settling the overpayment for much less than $1.27.

Full Content: CNBC

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.