Over $12 Million Returning to Medicaid Programs Following EpiPen Maker Settlement

Attorney General Andy Beshear announced Tuesday, October 31, 2017 that his office is returning over $12 million to state and federal Medicaid programs to resolve multistate claims that pharmaceutical company Mylan, Inc. violated federal law by knowingly misclassifying EpiPen and EpiPen Jr. as a generic drug to avoid paying higher rebates owed to Medicaid. Under the $12.2 million Kentucky settlement, $8.5 million will be returned to the federal Medicaid program and $3.7 million will be returned to Kentucky’s Medicaid program. According to the $465 million nationwide settlement, Mylan demanded massive price increases in the private market while avoiding its corresponding rebate obligations to Medicaid from 2010 to 2017 by erroneously reporting EpiPen as a generic drug despite the absence of any therapeutically equivalent drugs.