SPRINGFIELD, Mass. (WWLP) – Mylan, the company that makes EpiPens, will be paying a multi-million dollar fine.
Mylan recently faced criticism when they raised the prices of EpiPens from 100 dollars to 600 dollars over a seven-year period. They have not admitted to any wrongdoing, but will pay a 465 million dollar fine over allegations that the company has been overcharging Medicaid for the drug.
Drug makers are required by law to pay rebates for sales to patients insured by Medicaid, which is funded both by states and the federal government. Under the Medicaid drug rebate program, companies pay less money if the drug is classified as generic.
It was recently discovered that Mylan way paying the lower generic rate to Medicaid for its name brand EpiPen. The generic classification allowed Mylan to pay a smaller rebate on EpiPen sales to Medicaidprograms.
As a result, Mylan will pay a 465 million dollar fine to the Department of Justice to resolve questions that have been raised about the classification of EpiPen Auto-Injector.