New York Will Get $38.5 Million in EpiPen Settlement

Mylan has agreed to a $38,500,000 settlement with the state of New York for an alleged underpayment of rebates to the state's Medicare system. The underpayments were from negotiated rebates for EpiPen prescriptions filled through the state's Medicare program. The settlement is part of a multi-state and federal settlement with Mylan totaling $465 million in all.

The federal government and multiple states sued Mylan, accusing the company of knowingly underpaying rebates for EpiPens dispensed to Medicaid recipients between July 2010 and March 2017.

The Medicaid Drug Rebate Statute requires drug companies to issue rebates to federal and state programs in order to be included in coverage.

The lawsuit alleges that Mylan submitted false statements to several states and the federal Centers for Medicare and Medicaid Services. The statements were to avoid paying higher rebates by labeling the EpiPen as a "generic" rather than brand-name pharmaceutical.

The allegations came to light during the soaring EpiPen drug price scandal that emerged last year. The settlement would absolve Mylan of any wrongdoing and pay back the money owed to state and federal programs as well as cover legal fees for the suit.

The state of New York and its attorney general, Eric Schneiderman, have announced that they are joining the multi-state agreement tentatively and would receive about $38.5 million for the state's portion.

Source: TimesUnion.com

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