WASHINGTON – Senator Chuck Grassley, chairman of the Senate Judiciary Committee, will hold a hearing to examine the reported settlement agreement between the Justice Department and EpiPen maker Mylan. The hearing will also explore whether the government is using its existing authority to prevent drug companies from misrepresenting their products to the government and how the government holds drug companies accountable to taxpayers when misrepresentations do occur.
“Mylan’s management of the EpiPen has not only led to higher costs for patients and their families, but also for taxpayers in Iowa and across the nation by misclassifying its product to dodge higher Medicaid rebate requirements. Americans deserve to know what the government is doing to hold Mylan accountable, recoup lost tax dollars and prevent similar behavior in the future,” Grassley said.
The Centers for Medicare and Medicaid Services reportedly warned the pharmaceutical company on several occasions that it misclassified the EpiPen under Medicaid’s Drug Rebate Program. The misclassification allowed Mylan to underpay the government for Medicaid rebates, resulting in taxpayers and the states being overcharged for the product. The Justice Department and Mylan reportedly reached a settlement agreement earlier this month, but the details, including whether the settlement was proportional to what Mylan overcharged taxpayers, remains unclear. It’s also unclear how much of the settlement would be returned to the states and if any penalties, including those under the False Claims Act, would apply.
The hearing will begin Wednesday, November 30, 2016, 10 AM. A roster of witnesses will be publicized as soon as it is available.
Grassley initially raised concerns about the rising price of EpiPen in August after hearing from Iowans. Following revelations of the reported Medicaid misclassification, Grassley began examining whether taxpayers in Iowa were overcharged, and requested that the Department of Health and Human Services inspector general and Justice Department look into the misclassification matter.
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