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Eugene

(61,593 posts)
Wed Sep 28, 2016, 02:47 PM Sep 2016

Senators ask Justice Department to consider probe of EpiPen Medicaid classification

Source: Reuters

POLITICS | Wed Sep 28, 2016 | 1:53pm EDT

Senators ask Justice Department to consider probe of EpiPen Medicaid classification

By Diane Bartz | WASHINGTON

Senators Richard Blumenthal, Charles Grassley and Amy Klobuchar asked the Justice Department to investigate whether Mylan NV may have misclassified its EpiPen in order to pay lower rebates to the states.

In a letter released on Wednesday, the lawmakers noted that Mylan classified the EpiPen with the Medicaid Drug Rebate Program as a non-innovator multiple source drug, which pays a rebate of 13 percent to states, rather than innovator, which pays a rebate of a minimum of 23.1 percent.

"The facts ... suggest that Mylan may have knowingly misclassified EpiPens, potentially in violation of the False Claims Act and other statutes," the lawmakers said in a letter to Attorney General Loretta Lynch.

Mylan said in an email statement that its EpiPen was classified as a non-innovator drug since before Mylan purchased it in 2007. "Mylan's classification of EpiPen Auto-Injector as a non-innovator drug is consistent with longstanding written guidance from the federal government," the company said.

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Read more: http://www.reuters.com/article/us-congress-mylan-nl-idUSKCN11Y1X5
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