Mylan’s big settlement with the federal government last week over EpiPen rebates has a $120 million question attached to it.

The nearly six-month-long grace period drugmaker Mylan received before it has to pay full rebates for sales of its anti-allergy device could end up costing Medicaid tens of millions of dollars, an analyst said Tuesday.

Or it could end up costing Medicaid not much at all.

Because neither the federal government nor Mylan will explain what’s going on with that grace period, it is not clear how much, or how little, Medicaid will end up being out of under the deal.

Evercore ISI senior managing director and analyst Umer Raffat told CNBC that Medicaid — after making a projected $120 million or more in EpiPen purchases through April 1 — might have been entitled to a nearly 99 percent rebate from Mylan without that grace period.

Such a high rebate rate would have meant that Medicaid’s …
Go to Source

Mylan's grace period for EpiPen rebates could cost Medicaid up to $120 million – CNBC