Taxpayers Overpaid How Much for EpiPens?

According to a U.S. government report, American taxpayers who purchased the anti-allergy device EpiPen, may have been overcharged by as much as $1.27 billion, over the last 10 years.

Last year, Mylan Pharmaceuticals, the company that makes EpiPen, agreed to settle claims that it overcharged the nation’s Medicaid system for devices. The amount Mylan agreed to pay the federal government in a settlement was $465 million, in addition to a higher rebate rate in 2017.

For years, Mylan classified EpiPen as a generic drug, which pays Medicaid a lower rate on rebates than is paid on brand-name drugs. EpiPen is a brand-name medication.

U.S. senator, Chuck Grassley said the large disparity is between the settlement amount and the potential overpayment by the government. This was brought to light when the Department of Health and Human Services asked officials for a rundown of overcharges for EpiPen by Mylan Pharmaceuticals.

What is an EpiPen Used For?

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EpiPens are used to treat severe allergic reactions, known as anaphylaxis. They are one-time use auto-injectors that contain the drug Epinephrine. Epinephrine narrows the blood vessels and opens the airways to the lungs.

The Federal Centers for Medicaid and Medicare Services recently provided records that showed Mylan was told “several times” that they had misclassified EpiPen as a generic drug for Medicaid’s rebate program. Mylan initially failed to correct the classification, but recently has.

How the Mylan EpiPen Controversy Unfolded

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This isn’t the first time Mylan has been in the news for EpiPen costs. Last year, the company faced public outrage over hiking the price of EpiPen to more than $600 for a two-pack.

As the story unfolded, more information surfaced that prompted Medicaid officials to question the amount in rebates they received from Mylan, for the EpiPen program. Mylan continued to deny underpaying rebates, but eventually agreed to a settlement resolving the claims. They also agreed to classify EpiPen as a brand-name product this year.

Due to intense public outcry, Mylan Pharmaceuticals announced they would begin offering an EpiPen generic for about half the cost of its brand-name counterpart. Mylan’s CEO explained to Congress that not much is different between the EpiPen brand-name version and its generic, especially since both versions are made by the same manufacturer – Mylan.

Different types of Epinephrine Auto Injectors

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EpiPen isn’t the only auto-injector that can be used to treat anaphylaxis. Adrenalin and also Epinephrine are all lower priced alternatives to EpiPen. Auvi-Q is another epinephrine auto injector, though it is a pricey alternative.

We strongly advise asking your physician for a less expensive alternative, if you can’t afford the medication you have been prescribed. If no alternative is available, be sure to always shop around, using pharmacy search tools, like RxSaver.