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Mylan to pay $20.3M to Massachusetts for underpaying rebates on EpiPens

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Mylan to pay $20.3M to Massachusetts for underpaying rebates on EpiPens

Massachusetts Attorney General Maura Healey said Mylan NV will pay $20.3 million to the Massachusetts Medicaid program to settle charges that it underpaid rebates on EpiPens for MassHealth members.

In Massachusetts, the Medicaid and the Children's Health Insurance Program are combined into one program called MassHealth in Massachusetts.

The payment is part of a global settlement with the U.S., the District of Columbia and all 49 other states settling allegations against Mylan Inc. and its unit Mylan Specialty LP.

"Mylan knowingly misrepresented this drug to MassHealth in order to underpay on rebates and make a profit at the expense of our state," said Healey.

The settlement resolves allegations that between July 2010 and March 2017, the company submitted false statements to the Centers for Medicare and Medicaid Services that incorrectly classified EpiPen as a "noninnovator multiple source" drug instead of a "single source" or "innovator multiple source" drug, which affected the amount of rebate owed.

In a settlement with the federal government in August, Mylan was required to pay up to $465 million to the federal government and the states, depending on how many states joined. With all states participating, about $213.9 million of the total settlement will be distributed to the states.

As the Medicaid program is jointly funded by the federal government and the Massachusetts state government, the total Medicaid settlement of $20.3 million will be split into $7.9 million for the federal government and $12.4 million for Massachusetts.