Mylan to Pay $465 Million For Medicaid EpiPen Settlement
It was released yesterday that Mylan, a producer of EpiPens, would be required to pay a $465 million dollar settlement for years of misrepresentation to the federal government on two accounts of rebates. Mylan has essentially monopolized the EpiPen industry, becoming more of a brand name in the industry; however, the company has been filing as a generic product since 1997 and shirking the additional rebate cost that comes with brand status. Additionally, a second rebate is required when the cost of a product rises more than economic inflation during the same time period. Mylan raised the cost of its EpiPen pack by 23% from 2007 to 2016 while inflation was only 2% (“Mylan”).
This price hike had been called into question at a House hearing last month, where Mylan’s Chief Executive Officer, Heather Bresch, claimed that the company only made $50 in profit for a product that retails at $600 though no documentation could be presented to prove these claims (Thomas). The lack of documentation and round about answers was a primary concern of the hearing; Representative Elijah E. Cummings commented on this saying, “I’m concerned that is a rope-a-dope strategy. The industry will take their punches. But then they go right ahead and keep raising their prices” (Thomas).
“Mylan to pay $465 million settlement over Medicaid EpiPen rebates,” chicagotribune.com, last modified October 7, 2016, http://www.chicagotribune.com/business/ct-mylan-settlement-medicaid-epipen-20161007-story.html
Katie Thomas, “Mylan’s Chief is Chastised by Lawmakers Questioning EpiPen Pricing,” NY Times, last modified September 21, 2016, http://www.nytimes.com/2016/09/22/business/mylan-chief-to-insist-epipen-is-priced-fairly-at-house-hearing.html