EpiPen Misclassified as Generic Drug, Federal Officials Claim

News yesterday that Mylan, the maker of the EpiPen, misclassified its product and overcharged Medicaid for years has some Congressional leaders furious.

“I am outraged that Mylan has once again taken advantage of hardworking Americans,” said Nita M. Lowey, a Democrat from New York and a ranking member of the House Appropriations Committee. “Mylan’s business practices appear to be irresponsible at best, and they are potentially devastating for millions of Americans who are one allergic reaction away from a life-threatening medical emergency. Mylan should immediately take responsibility for its actions and reimburse the taxpayers the money they are owed.”

The allergic-reaction auto-injector has been classified as a generic drug since 1997, according to TheHill.com. That means Medicaid only got a 13 percent discount on it instead of the 23.1 percent discount for a brand drug. The head of the federal Centers for Medicare and Medicaid Services said in a letter that the CMS had told the company the EpiPen was misclassified. The letter was released Wednesday by Sen. Ron Wyden, a Democrat from Oregon, and Rep. Frank Pallone, a Democrat from New Jersey. The letter also said that companies that misclassify their product can be liable under federal law.

A company spokeswoman said the EpiPen had been so classified before it was acquired by Mylan, according to TheHill.com.

SEE ALSO:

• Lowey Questions EpiPen Profit Figure Given to Congress
• New York AG Launches Antitrust Investigation Into Mylan
• Congresswoman Urges Mylan to Lower Costs of Life-Saving EpiPen

When criticism began from lawmakers and consumers about the whopping price of the EpiPen, which rose about 550 percent over the past decade, Mylan announced that it would would launch a generic alternative at a 50 percent discount of the list price. The generic EpiPen will cost $300 per two-pack carton and will be identical to the branded medicine.

In addition, Mylan has said it will offer financial help to customers and will expand the number of low-income patients eligible to receive company subsidies. As the New York Times noted, the steps to offer financial assistance did not do much to quell public outrage, as the overall cost to the health system would remain the same. The list price for a pack of two EpiPens is $608.

Image Credit: Greg Friese via Flickr Creative Commons