EpiPen Agreement Protects Medicaid Integrity,  Saves Hundreds of Millions of Dollars

EpiPen Agreement Protects Medicaid Integrity,
Saves Hundreds of Millions of Dollars


The Centers for Medicare & Medicaid Services (CMS) is pleased to announce an agreement with Mylan regarding the classification of EpiPen. Per the agreement, Mylan will reclassify EpiPen as a brand name drug consistent with the Medicaid statute and regulations. In addition, Mylan has agreed to use the correct reference price of the 3rd quarter of 1990 for the purpose of calculating inflationary payment rebates under the Medicaid Drug Rebate (MDR) program, saving the Medicaid program hundreds of millions of dollars. These changes will be effective retroactive to April 1, 2017.

“Mylan’s agreement with CMS to correctly classify EpiPen is a huge win for Medicaid beneficiaries and American taxpayers,” said CMS Administrator Seema Verma. “Medicaid will no longer be overcharged for EpiPen, protecting access for Medicaid beneficiaries who rely on this lifesaving drug while saving hundreds of millions of dollars. This announcement puts drug manufacturers on notice that CMS remains vigilant in our duty to protect the integrity of the Medicaid program.”


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