EpiPen pricing has been in the headlines often lately. The manufacturer, Mylan, keeps raising the price and ripping off patients. EpiPens went from costing $57 in 2007 to around $600 in 2016. With no generic option available, the company has no price ceiling. Now, it seems they have also been ripping off the government.
It appears that Mylan has been taking advantage of reimbursement rates with Medicare and Medicaid by miscategorizing its product. By law, pharmaceutical companies have to reimburse Medicare/Medicaid for 13% of the total cost of a generic drug that’s paid for by the programs. But for name brand drugs, pharmaceutical companies have to reimburse 23.1%. Mylan classified the EpiPen as generic and now Uncle Sam is calling.
Back in October, Mylan agreed to pay the US government $465 million without admitting any wrongdoing. It was the end of a long saga with Mylan and the company was quickly rewarded with a bounce in its stock price. As more information comes to light as to the extent of the fraud, however, Mylan is at serious risk of the settlement being voided.