MORGANTOWN, W.Va. — Nearly $2 million in restitution will go to state Department of Health and Human Resources (DHHR) Medicaid Fraud Control Unit following a settlement between the State of West Virginia and Mylan Inc and Mylan Specialty L.P.

The settlement, worth more than $1.9 million, resolves allegations that Mylan made false statements to Medicaid by misclassifying its EpiPen product, lowering the amount of rebates the company was required to pay under federal law.

All 50 states have entered into agreements with Mylan.

The National Association of Medicaid Fraud Control Units crafted a team of member states who participated in the settlement negotiations with Mylan. This included research and data from the DHHR’s Medicaid Fraud Control Unit.

“West Virginia’s Medicaid Fraud Control Unit worked diligently with the national team to resolve this case,” Kathy Lawson, DHHR Inspector General, said in a press release. “We are pleased to have secured the return of these funds to the Medicaid program.”

West Virginia Attorney General Patrick Morrisey called the settlement “irresponsible” in a statement.

“If my office had expanded authority – included in a bill passed by the West Virginia Senate and stalled in the House – to prosecute Medicaid fraud, we would have waged a vigorous prosecution and believe we would have likely recovered significant monies for taxpayers,” he said.

The settlement did not contain an admission or finding of wrongdoing. Under the settlement, Mylan will reclassify EpiPen for purposes of the Medicaid Drug Rebate Program and pay the rebate applicable to innovator products, effective retroactively as of this past April 1.

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