Mylan Accused of Overcharging on Medicaid for EpiPen (Correct)

(Bloomberg) — Mylan NV has been overcharging the U.S. for years on its EpiPen allergy shot, a government agency said, as two lawmakers accused the drugmaker of “bilking” taxpayers.The government’s allegations, disclosed in a letter from the Centers for Medicare and Medicaid Services Wednesday afternoon, added to Mylan’s woes over EpiPen’s rising prices. Analysts estimate the company may have made hundreds of millions by misclassifying the device under complex Medicaid pricing rules. If it turns out the allergy pen was wrongly classified as a generic drug — enabling Mylan to pay a lower rebate rate than Medicaid requires for brand-name drugs — it could be costly for the company.The government has, in the past, “expressly told Mylan that the product is incorrectly classified,” the Centers for Medicare and Medicaid Services, or CMS, said in the letter, which came in response to an inquiry by …
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