Mylan To Pay $465M to Settle Crimes of Overcharging on EpiPen
UK-based Mylan Inc., makers of the EpiPen and other lifesaving drugs, finally agreed to a $465 million fine to be paid by Mylan’s Pennsylvania-based subsidiary, after the United States Department of Justice uncovered that Mylan overcharged state Medicaid programs by more than $1.2 billion.
Drug price advocates and people outraged over past price-gouging revelations about Mylan’s EpiPen, including supporters of Ohio’s Yes on Issue 2 drug pricing ballot measure, applauded news of the decision.
According to news reports, including a news article in The Washington Times, the Justice Department said Mylan overcharged Medicaid by $1.2 billion, “ … by misclassifying its EpiPen as a generic instead of a brand-name product … The Justice Department said Mylan’s move allowed it to pay smaller rebates to states under Medicaid, the government insurance program for the poor.”
“It seems it was not enough for Mylan to raise the price of its lifesaving EpiPen over 500% over the last decade—to $600 for a two-pack, up from $57 per shot when it first took over sales of EpiPens in 2007,” said Dennis Willard, spokesperson for the Yes on Issue 2 campaign. “For Medicaid rebate and reimbursement purposes, Mylan also deliberately misclassified their products as generics in order that they would have to pay much smaller rebates. The $1.2 billion Mylan gouged from Medicaid could have paid for 200,000 EpiPen two-packs for those suffering from life-threatening allergies, asthma and other conditions. Mylan joins the upper ranks of greedy drug companies putting profits before people, and offers yet another clear cut and compelling reason to vote ‘Yes on Issue 2’ this November.”