{"id":84115,"date":"2017-08-29T01:26:55","date_gmt":"2017-08-29T05:26:55","guid":{"rendered":"http:\/\/madisoncountycourier.com\/?p=84115"},"modified":"2017-08-28T16:11:02","modified_gmt":"2017-08-28T20:11:02","slug":"schneiderman-announces-465-million-joint-statefederal-settlement-with-maker-of-epipen","status":"publish","type":"post","link":"https:\/\/madisoncountycourier.com\/?p=84115","title":{"rendered":"Schneiderman announces $465 million joint state\/federal settlement with maker of EpiPen"},"content":{"rendered":"

\"\"<\/a>New York Leads Coalition Of States In Settlement Of Allegations That Mylan Knowingly Underpaid Medicaid, Costing Taxpayers Millions<\/em><\/p>\n

Settlement Will Return $38.5 Million To New York<\/em><\/p>\n

Schneiderman: Efforts To Shortchange Medicaid Will Not Be Tolerated<\/em><\/p>\n

Attorney General Eric T. Schneiderman today announced that New York has agreed in principle to join a state-federal $465 million settlement with Mylan Inc. and its wholly owned subsidiary, Mylan Specialty L.P.\u2014collectively known as \u201cMylan.\u201d New York led a coalition of states in the investigation that resolved\u00a0allegations that Mylan knowingly underpaid rebates owed to Medicaid for the drugs EpiPen and EpiPen Jr. (\u201cEpiPen\u201d) that were dispensed to Medicaid beneficiaries. Under the settlement, New York will receive $38.5 million.<\/p>\n

\u201cFor nearly seven years, Mylan prioritized its bottom line \u2013 and shortchanged the Medicaid program and taxpayers. By misclassifying EpiPen, Mylan attempted to sidestep their obligations, leaving taxpayers to foot the bill,\u201d said\u00a0Attorney General Schneiderman. \u201cPharmaceutical companies should be warned: efforts to shortchange Medicaid will not be tolerated, and we\u2019ll ensure that these companies are held accountable.\u201d<\/p>\n

Following a joint federal and state investigation, the settlement resolves allegations that Mylan submitted false statements to the Centers for Medicare and Medicaid Services and several states reliant on EpiPen rebates, and knowingly underpaid its obligations for Medicaid drug rebates to the State Medicaid Program for EpiPen.<\/p>\n

Under the Medicaid Drug Rebate Statute, participating pharmaceutical manufacturers or New Drug Code holders, such as Mylan, must sign a Rebate Agreement with the Secretary of the United States Department of Health and Human Services as a precondition for obtaining Medicaid coverage for their drugs and pay quarterly rebates to state Medicaid programs for drugs dispensed to Medicaid beneficiaries. Additionally, NDC holders are required to advise CMS regarding the classification of a covered drug as an \u201cinnovator\u201d or \u201cnoninnovator\u201d drug, as the amount of rebates owed varies depending on the drug\u2019s classification. The amount of the rebate also depends on pricing information provided by the manufacturer. For drugs classified as \u201cinnovator\u201d drugs, NDC holders must report their \u201cBest Price,\u201d or the lowest price for which it sold a covered drug in a particular quarter.<\/p>\n

The settlement resolves allegations that, between July 29, 2010 and March 31, 2017, Mylan allegedly submitted false statements to CMS that incorrectly classified EpiPen as a \u201cnoninnovator multiple source\u201d drug, as opposed to a \u201csingle source\u201d or \u201cinnovator multiple source\u201d drug, and failed to report a Best Price to CMS for EpiPen, which is required for all \u201csingle source\u201d and \u201cinnovator multiple source\u201d drugs. As a result, Mylan submitted false statements to CMS and several states reliant on EpiPen rebates, and knowingly underpaid its obligation for Medicaid drug rebates to the State Medicaid Program for EpiPen.<\/p>\n

Today\u2019s settlement also resolves allegations that Mylan Specialty overcharged certain entities (known as the \u201c340B Covered Entities\u201d) that participated in the 340B Drug Pricing Program, 42 U.S.C. \u00a7 256b.<\/p>\n

The investigation stemmed from two whistleblower, or \u201cqui tam,\u201d actions pending in the United States District Court for the District of Massachusetts, which allege claims under the federal False Claims Act and various state false claims statutes that Mylan underpaid its rebate obligations to states.<\/p>\n

New York\u2019s claims in the case were handled by the Attorney General\u2019s Medicaid Fraud Control Unit, which worked closely with the United States Attorney\u2019s Office for the District of Massachusetts, the United States Department of Justice, and a multi-state team that included representatives from the Offices of the Attorneys General for California, North Carolina, South Carolina, Washington, and the Commonwealths of Massachusetts and Virginia. New York was also assisted by representatives of the New York State Department of Health\u2019s Office of Health Insurance Programs, headed by Deputy Commissioner Jason A. Helgerson.<\/p>\n

New York MFCU\u2019s Chief of the Civil Enforcement Division Carolyn T. Ellis led the multi-state team that negotiated the settlement with Mylan for the states. Senior Auditor-Investigator Matthew Tandle was a member of the state team, assisted by Auditor Investigator Emily Brissette, under the supervision of Stacey Millis, Regional Chief Auditor of the Civil Enforcement Division.<\/p>\n

The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney.\u00a0 The Division of Criminal Justice is led by Chief Deputy Attorney General Jason Brown.<\/p>\n","protected":false},"excerpt":{"rendered":"

New York Leads Coalition Of States In Settlement Of Allegations That Mylan Knowingly Underpaid Medicaid, Costing Taxpayers Millions Settlement Will Return $38.5 Million To New York Schneiderman: Efforts To Shortchange Medicaid Will Not Be Tolerated Attorney General Eric T. Schneiderman today announced that New York has agreed in principle to join a state-federal $465 million […]<\/p>\n","protected":false},"author":2,"featured_media":70131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[23810,32,8],"tags":[],"class_list":["post-84115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wellbeing","category-crime","category-top-story"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/p43meu-lSH","jetpack_featured_media_url":"https:\/\/i0.wp.com\/madisoncountycourier.com\/wp-content\/uploads\/2016\/06\/Attorny_General_Eric_T_Schneiderman.jpg?fit=260%2C221&ssl=1","_links":{"self":[{"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=\/wp\/v2\/posts\/84115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=84115"}],"version-history":[{"count":0,"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=\/wp\/v2\/posts\/84115\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=\/wp\/v2\/media\/70131"}],"wp:attachment":[{"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=84115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=84115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/madisoncountycourier.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=84115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}