FRAUD AND WASTE: EpiPen maker overcharged taxpayers for years, officials say.
Democratic lawmakers released a letter on Wednesday from Andy Slavitt, head of the Centers for Medicare and Medicaid Services (CMS), confirming that EpiPen maker Mylan had misclassified the device — in effect, overcharging taxpayers for its product.
The revelation is the latest turn involving Mylan, which has recently faced outrage from both parties over its 400 percent-plus increase in the price of EpiPens in the past few years.
The letter from Slavitt, released by Sen. Ron Wyden (D-Ore.) and Rep. Frank Pallone (D-N.J.), confirms that Mylan has misclassified the EpiPen as a generic drug, as opposed to a brand drug, since 1997. That means Mylan was only giving Medicaid a 13 percent discount on its product, instead of a 23.1 percent discount.
The CMS even noted it had specifically told Mylan that its product was misclassified.
“The Center for Medicaid and CHIP Services in CMS has, on multiple occasions, provided guidance to the industry and Mylan on the proper classification of drugs and has expressly told Mylan that the product is incorrectly classified,” Slavitt wrote.
Wouldn’t it be something if the FDA didn’t keep competitors off the market and Medicaid (and consumers) had multiple vendors to choose from?