Three US senators want the US Department of Justice to investigate whether Mylan Pharmaceuticals violated federal law with its classification of its EpiPen device with the Medicaid Drug Rebate Program. Under the program, companies are responsible for accurately reporting and paying a rebate on drugs paid for by Medicaid.
In a letter to US Attorney General Loretta Lynch, the senators contend that Mylan may have violated the False Claims Act by “knowingly” misclassifying EpiPen as a generic instead of a brand-name product. A violation occurs when a company “knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay . . . money . . . to the government,” they wrote.
About the Author Reprints
The anti-trust hot water Mylan is in makes me chuckle, considering that they don’t currently have any competitors.
“And why did it take so long to notice this disparity?” Sorry – just a rhetorical question … I will bet that Medicare Part D did not require an automatic reclassification of existing generic products. Any takers?