Maryland to receive $10M from EpiPen maker Mylan in Medicaid fraud settlement

The state of Maryland will receive nearly $10 million from Epipen maker Mylan, part of the company’s $465 million settlement with the Department of Justice over allegations that it overbilled Medicaid for the life-saving allergy medication injections, Maryland Attorney General Brian Frosh announced Thursday.

The settlement resolved allegations that Mylan improperly classified EpiPens, a brand-name drug, as a generic medication between 2010 and 2016 to avoid paying higher rebates on the epinephrine-filled devices — overcharging state Medicaid programs while raising the price of the medication in the private market.

“Mylan illegally reduced its rebate obligations to the Medicaid program while increasing the cost of its EpiPen for consumers in the private market,” Frosh said in a statement. “Every drug manufacturer must report honest and accurate information, and Mylan must pay the cost for failing to do so.”

The Pennsylvania-based phamaceutical company did not respond to a request for comment Thursday. Instead, a company spokeswoman referred The Sun to a press release Mylan issued last August when the terms of the settlement were finalized.

“The settlement does not contain an admission or finding of wrongdoing by Mylan or any of its affiliates or personnel,” the statement said. “The U.S. Department of Justice’s own press release announcing the agreement stated that the settled claims were ‘allegations only’ and that there was ‘no determination of liability.’ ”

Maryland will receive about $9.98 million of the settlement money that will be shared by the participating states, Frosh said.

Mylan drew public ire for its decision to raise the price of a two-pack of EpiPens to $600 last year, up from $100 in 2007, and the company’s unpaid rebates totaled as much as $1.27 billion between 2000 and 2016, according to a report by the Department of Health and Human Services.

cmcampbell@baltsun.com

twitter.com/cmcampbell6

Copyright © 2017, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad
46°