This latest revelation is only a small part of the tempest that has surrounded the company’s EpiPen since it started overcharging Americans hundreds of millions of dollars since at least 2011 for the device, reports the Consumerist.
At the center of the Medicaid settlement was the allegation that Mylan had only reimbursed the program for the EpiPens as a generic drug, which meant that Mylan’s mandatory rebate to the program was 10 percent less than what was required by law.
Basically, drug manufacturers whose medications are purchased by Medicaid reimburse the program through mandatory rebates. The rebates are divided into two classes. Branded or newer drugs, those with little or no competition, have a significantly higher rebate, of at least 23.1 percent.
On the other hand, generic or what some call “non-innovator multiple source” drugs (NIMS) have a rebate rate of 13 percent of the manufacturer’s price during the rebate period. NIMS drugs include …
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