Morning Briefing
Summaries of health policy coverage from major news organizations
Senators Urge DOJ To Investigate Whether Mylan Acted Illegally By Gaming System
The Associated Press: Senators Ask Justice Department To Investigate EpiPen Maker
Senators are asking the Justice Department to investigate whether pharmaceutical company Mylan acted illegally when it classified its life-saving EpiPen as a generic drug and qualified for lower rebate payments to states. The chairman of the Senate Judiciary Committee, Sen. Charles Grassley, R-Iowa, and Democratic Sens. Richard Blumenthal of Connecticut and Amy Klobuchar of Minnesota sent a letter to Attorney General Loretta Lynch on Wednesday and suggested the company may have gamed the system to divert millions of dollars from taxpayers. (9/28)
Reuters: Senators Ask Justice Dept To Consider Probe Of EpiPen Medicaid Classification
U.S. Senators Richard Blumenthal, Charles Grassley and Amy Klobuchar asked the Justice Department to investigate whether Mylan NV may have misclassified its EpiPen in order to pay lower rebates to the states. In a letter released on Wednesday, the lawmakers noted that Mylan classified the EpiPen with the Medicaid Drug Rebate Program as a non-innovator multiple source drug, which pays a rebate of 13 percent to states, rather than innovator, which pays a rebate of a minimum of 23.1 percent. (Bartz, 9/28)
The Star Tribune: Senators Want To Know If EpiPen Maker Violated Law
Several U.S. senators, including Minnesota Democrat Amy Klobuchar, have asked the Justice Department to determine whether Mylan Pharmaceuticals broke the law in classifying its brand name EpiPen as a generic device in order to lower rebates the company paid to Medicaid... In the case of innovator drugs, which are in essence brand names, the rebate amount is at least 23.1 percent of what the company received in Medicaid payments. In the case of non-innovator multiple source drugs, which are in essence generic, the rebate amount is 13 percent. That means a company can keep 10 percent more of its Medicaid payments if it classifies its drug as non-innovator or generic. (Spencer, 9/28)
Reuters: U.S. Agency Told Mylan That EpiPen Was Misclassified
A U.S. federal health agency said on Wednesday it had "expressly advised" Mylan NV that the drugmaker had improperly classified its EpiPen emergency allergy treatment in a way that allowed it to pay lower rebates to state health programs. (9/28)
Des Moines Register: EpiPen Price Increases Hit Iowa Medicaid
The cost of EpiPens to the state of Iowa has nearly tripled since 2012, and one Iowa lawmaker says it’s hurting taxpayers. House Majority Leader Rep. Chris Hagenow, R-Windsor Heights, asked the Iowa Department of Human Services to look into how much the state pays for the lifesaving allergy treatment through its Medicaid program. He said he became interested in the issue after the drug’s manufacturer drew widespread criticism for significantly raising prices from less than $100 in 2009 to about $600 this year. (Pfannenstiel, 9/28)
