US Senators Chuck Grassley and Ron Wyden have introduced legislation targeting tactics used by drugmakers to overcharge taxpayers for Medicaid rebates, The Hill reported.
The bill will grant the Department of Health and Human Services the ability to reclassify drugs when they are purposely misclassified by companies in an effort to pay lower rebates.
The news comes after Mylan agreed to pay $465 million to resolve a Justice Department lawsuit accusing the company of incorrectly classified EpiPen as a generic drug.
Meanwhile, a federal analysis uncovered that taxpayers may have overpaid for EpiPen by as much as $1.27 billion over a 10-year period.
“While families struggle to afford medicines like EpiPen, drug makers are busy manipulating the system to squeeze taxpayers even more,” Wyden remarked, adding "this bipartisan bill will crack down on Big Pharma’s games and help prevent them from taking advantage of Medicaid, a program meant to protect the most vulnerable."
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