WASHINGTON — EpiPen maker Mylan reached a $465 million settlement with the Justice Department to "resolve questions that have been raised" about whether the Medicaid program overpaid for the lifesaving allergy injection, the company said in a release Friday afternoon.
In recent weeks, many politicians have called for investigations into whether EpiPen was improperly classified in the Medicaid Drug Rebate program. Under the rebate program, the EpiPen has been classified as a noninnovator drug, which means the company is required to pay only a 13 percent rebate.
In contrast, brand name drugs or those with a single source must pay a 23.1 percent rebate and an additional amount if price hikes occurred faster than inflation.
The company did not admit wrongdoing in agreeing to the settlement.
The settlement follows the release earlier this week of a letter from the Centers for Medicare and Medicaid Services showing that Medicaid paid $960 million for EpiPens over a five-year period ending in 2015. After rebates, the company paid Medicaid $797 million, which the letter said reflected a rebate of 13 percent — although the amount is actually closer to 16 percent.