Yes on Issue 2: EpiPen Maker Mylan Caught Overcharging Medicaid $1.2 Billion; Agrees to $465M Settlement with Feds

Managed Care Weekly Digest

By a News Reporter-Staff News Editor at Managed Care Weekly Digest -- Drug price advocates and people outraged over the price of Mylan, Inc.'s lifesaving EpiPen and other lifesaving drugs, including supporters of Ohio's Yes on Issue 2 drug pricing ballot measure, applauded news of a $465 million settlement or fine agreed to by Mylan with the United States Department of Justice following the revelation that Mylan overcharged state Medicaid programs by more than $1.2 billion (see also Medicare and Medicaid).

According to news reports, including a news article in The Washington Times, the Justice Department said Mylan overcharged Medicaid by $1.2 billion, " ... by misclassifying its EpiPen as a generic instead of a brand-name product ... The Justice Department said Mylan's move allowed it to pay smaller rebates to states under Medicaid, the government insurance program for the poor." "It seems it was not enough for Mylan to raise the price of its lifesaving EpiPen over 500% over the last decade-to $600 for a two-pack, up from $57 per shot when it first took over sales of EpiPens in 2007," said Dennis Willard, spokesperson for the Yes on Issue 2 campaign. "For Medicaid rebate and reimbursement purposes, Mylan also deliberately misclassified their products as generics in order that they would have to pay much smaller rebates. The $1.2 billion Mylan gouged from Medicaid could have paid for 200,000 EpiPen two-packs for those suffering from life-threatening allergies, asthma and other conditions. Mylan joins the upper ranks of greedy drug companies putting profits before people, and offers yet another clear cut and compelling reason to vote 'Yes on Issue 2' this November."

"The greedy drug companies trying to defeat the Yes on Issue 2 campaign to lower drug prices will say anything and do anything to protect their excessive profits. Mylan's actions speak volumes about the gimmicks that greedy drug companies use to pretend they are lowering drug prices, when in fact they are squeezing every dollar they can from the sick, the suffering and unfortunately the dying patients they should be serving. Vote yes on Issue 2 and send greedy drug companies like Mylan a powerful message: Stop hurting Ohioans," Willard added. Background on Ohio Ballot Issue 2 The Yes on Issue 2 campaign is a broad-based, bi-partisan coalition. More than 200,000 Ohio voters signed petitions to put an amendment on the ballot in November that will lower drug prices for over 4 million Ohioans, including 164,000 children, save taxpayers $400 million annually, reduce healthcare costs for everyone and teach greedy drug companies and their CEOs a lesson.

You can learn more by visiting yesonissue2.com or following us on Facebook and Twitter.

Paid for by Ohio Taxpayers for Lower Drug Prices View source version on businesswire.com: http://www.businesswire.com/news/home/20170818005583/en/

Keywords for this news article include: Health Policy, Medicare and Medicaid, Ohio Taxpayers for Lower Drug Prices.