Mylan, the drug company that makes EpiPens, has been overcharging Medicare and Medicaid in the US for years. But today the pharmaceutical company had to finally pay the piper. In a deal announced by the notorious price-gougers, Mylan will hand over $US465 million ($611.8 million) to the US government, but it won't have to admit any wrongdoing. Mylan CEO Heather Bresch listens to an aide during a hearing before lying to the House Oversight and Government Reform Committee on 21 September 2016 (Photo by Alex Wong/Getty Images)
How was Mylan ripping off the government? They have been misclassifying EpiPen as a generic drug, rather than a brand name drug. This, of course, is quite ironic given the fact that one reason Mylan has been able to charge consumers so much for the EpiPen is that there's no generic alternative.
When drug companies sell their products to government programs like Medicare and Medicaid, the companies have to reimburse a certain percentage of the total cost. In the case of generic drugs, that reimbursement is just 13 per cent. According to the Centres for Medicare and Medicaid Services (CMS), Mylan should have been reimbursing the government under the brand name rate of 23.1 per cent.
"This agreement is another important step in Mylan's efforts to move forward and bring resolution to all EpiPen Auto-Injector related matters," Mylan CEO and noted liar Heather Bresch said in a statement.
"The agreement is in addition to the significant steps Mylan has taken in relation to EpiPen Auto-Injector over the past several weeks, including the unprecedented, pending launch of a generic version of EpiPen Auto-Injector and expansion of our patient access programs for this product," Bresch continued.
"Entering into this settlement is the right course of action at this time for the Company, its stakeholders and the Medicaid program," she said.
Yes, it's the right course of action because you ripped off the US government after lying to Congress about how much you make on each pack of EpiPen. Mylan's stock price is currently up 9.4 per cent in after hours trading.