By Cindy L. Nations –
Drug company Mylan agreed to pay $465 million to quickly settle a Justice Department investigation into claims that it deliberately overcharged Medicaid for its EpiPen anti-allergy device. Why would a company agree so quickly to such a large settlement? Well, it might have something to do with this … The Department of Health and Human Services’ Office of Inspector General reports that the Medicaid misclassification of EpiPen may have cost taxpayers $1.27 billion from 2006 to 2016. Senator Richard Blumenthal and a group representing state Medicaid directors are now demanding that Mylan pay Medicaid the full amount up to $1.27 billion that it owes. Fortunately, the previous settlement agreement, which is a fraction of the true costs, has not yet been finalized.