A top Republican senator wants answers about a deal between the Justice Department and drug maker Mylan to settle allegations it bilked Medicaid.
Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, will hold a hearing on Nov. 30 to explore a potential settlement between the Justice Department and drug maker Mylan over the company’s apparent underpayments to Medicaid.
Mylan agreed to pay the federal government $465 million earlier this month to settle charges it violated the False Claims Act. The drug maker denied any wrongdoing.
The allegations centered on whether Mylan knowingly misclassified the EpiPen to avoid paying a higher rebate to Medicaid.
The drug should have been classified as a brand name product and pay Medicaid a rebate of 26 percent the price of the drug. However, Mylan classified it as a generic drug and paid a 13 percent rebate.
Grassley wants answers on the deal.
“Americans deserve to know what the government is doing to hold Mylan accountable, recoup lost tax dollars and prevent similar behavior in the future,” he said.
Grassley and other lawmakers raised the question of the misclassification after news that Mylan raised the price of the EpiPen by 400 percent since acquiring it in 2007. It now costs $600 for a two-pack of the drug.
The committee hasn’t announced witnesses.
