Officials: Maryland set to receive over $9M. in Medicaid fraud settlement
Officials say the State of Maryland will receive over $9,000,000 from a pharmaceutical corporation as part of a Medicaid fraud settlement.
The Maryland Office of the Attorney General says on Thursday, that the state will receive $9,979,638.42 in a settlement for allegations against Mylan Inc. and its wholly-owned subsidiary, Mylan Specialty L.P. (Mylan). Officials report that the settlement resolves allegations that Mylan demanded massive price increases for its EpiPen in the private market and underpaid its EpiPen rebates to Maryland's Medicaid program.
According to the Office of the Attorney General, from July 29, 2010 to March 31, 2017, Mylan submitted or caused to be submitted false statements to CMS and/or the States relating to EpiPen for Medicaid rebate purposes. Mylan Inc. is apparently a Pennsylvania corporation manufactures, markets and sells pharmaceuticals through its wholly-owned subsidiaries. Mylan Specialty is a Delaware limited partnership with its principal place of business in Morgantown, West Virginia, which owns the exclusive rights to sell EpiPen in the United States and possesses legal title to the New Drug Codes ("NDCs") for EpiPen.
Authorities say the investigation stemmed from two whistle-blower lawsuits pending in the United States District Court for the District of Massachusetts. The State of Maryland is one of the participating states that will share $213,936,000 of the total settlement.
Attorney General Brian Frosh says "Mylan illegally reduced its rebate obligations to the Medicaid program while increasing the cost of its EpiPen for consumers in the private market. Every drug manufacturer must report honest and accurate information, and Mylan must pay the cost for failing to do so."
The Maryland Attorney General thanked the Medicaid Fraud Control Unit for its work on the case, specifically Assistant Attorney General Adam T. Sampson and Chief Auditor Ruth Jarrell.
