Though the EpiPen emergency allergy treatment has been around for decades, the increased demand for the drug and its soaring price tag have caused Medicaid spending on EpiPen to go from around $66 million in 2011 to $365 million in 2015. All this time, claims Andrew Slavitt, Acting Administrator for the Center for Medicare & Medicaid Services, Mylan’s parent company has been shortchanging Medicaid on rebates.As we’ve mentioned in previous stories, the Medicaid Drug Rebate Program requires drugmakers to pay back a portion of their Medicaid revenue to the states through rebates. The size of those rebates is determined by whether the drug is considered an “innovator” medication (often a newer, higher-cost drug with little or no competition) or a “non-innovator multiple source” (NIMS) drug (often an older drug with competition from generics). Since 2010, the rebate rate for a NIMS drug is 13% of the average manufacturer price during the rebate period. …
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Administrator: Mylan Has Overcharged Medicaid For EpiPen By At Least 10% – The Consumerist