October 6, 2016—EpiPen manufacturer Mylan cheated Medicaid out of millions of dollars of drug rebates for almost 20 years by misclassifying the product as a generic, two senior members of Congress said yesterday after the Centers for Medicare & Medicaid Services confirmed the situation in a letter.
Although CMS didn’t address the matter in the letter, others in Congress want to know if Mylan simultaneously bilked safety-net hospitals and health centers out of 340B drug discounts on EpiPens. That’s because a drug’s 340B price is tied to its Medicaid price. House Energy & Commerce Republicans have asked the Department of Health and Human Services Inspector General to investigate whether Mylan’s misclassification of EpiPen as a generic for Medicaid drug rebate purposes has implications for healthcare providers in the 340B drug discount program. Senate Finance Committee Republicans have backed their House colleagues’ request.
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