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EpiPen Maker May Have Cheated Government Out Of Millions Of Dollars

Mylan has been accused of classifying EpiPens as a generic drug to pay a smaller rebate to Medicaid.

By Ryan Biek | October 6, 2016

Mylan's found itself in another EpiPen scandal; only this time, the company may have overcharged the U.S. government.

On Wednesday, two members of Congress accused Mylan of misclassifying its emergency allergy medication as a generic drug so it could pay less in rebates to Medicaid. 

SEE MORE: Lawmaker Says Mylan's Lobbying Opened The Door For EpiPen Scrutiny

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Instead of paying a 23 percent rebate for a brand-name drug, Mylan has been paying a 13 percent rebate. That amounts to millions of dollars less to the government and taxpayers who need the drug.

At the same time, Mylan raised the price of a single pen to roughly $300 this year. 

Mylan may have a harder time arguing EpiPens fall under the generic drug category, since during the height of its previous price scandal, the company said it would start selling a generic version of EpiPens for half-price. 

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