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August 18, 2017

MADIGAN: $465 MILLION SETTLEMENT WITH DRUGMAKER MYLAN FOR UNDERPAYING MEDICAID REBATES FOR EPIPENS

Illinois to Receive Over $6.3 Million in Restitution & Other Recovery in Settlement

Chicago – Attorney General Lisa Madigan today announced that Illinois is part of a $465 million settlement between the federal government and other states with Mylan Inc. and its wholly-owned subsidiary, Mylan Specialty L.P. (Mylan), to resolve allegations that Mylan knowingly underpaid rebates owed to the Medicaid program for EpiPen® and EpiPen Jr.® (EpiPen) dispensed to Medicaid beneficiaries. As part of the settlement, Illinois will receive more than $6.3 million in restitution and other recovery.

“Mylan’s fraud cheated the state’s Medicaid system out of resources needed by people who depend on it,” Madigan said. “Today’s settlement will put money back into the Medicaid system where it’s desperately needed.”

Today’s settlement resolves allegations that from July 29, 2010 to March 31, 2017, Mylan submitted false statements to the Centers for Medicare and Medicaid Services (CMS) that incorrectly classified EpiPens under terms defined in the Rebate Statute and Rebate Agreement. Mylan also failed to report a “Best Price” to CMS for EpiPens, as directed by the same statute. As a result, Mylan submitted false statements related to EpiPens to CMS and the states for Medicaid rebate purposes and underpaid EpiPen rebates to the state Medicaid programs.

Deputy Bureau Chief Heather Tullio D’Orazio with Madigan’s Medicaid Fraud Bureau handled the investigation and settlement.  

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