Wednesday, November 1, 2017

Kentucky gets $12.2 million as part of national EpiPen settlement; money will go to Medicaid, which was defrauded

A pharmaceutical company that makes EpiPen and EpiPen Jr., Mylan Inc., has been ordered to pay a $465 million nationwide settlement for knowingly avoiding the payment of rebates to Medicaid programs. Kentucky's portion of the settlement is $12.2 million.

Attorney General Andy Beshear said $8.5 million will be returned to the federal Medicaid program and $3.7 million will be returned to Kentucky’s program. The federal government pays about 70 percent of Medicaid costs in the state.

Federal law requires makers of brand-name drugs to pay higher rebates to Medicaid, and Mylan was found to have avoided paying these higher rebates by improperly classifying the brand name drug as a generic one.

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