Bipartisan senators introduce new drug pricing bill

A bill introduced by Sens. Chuck Grassley (R-IA) and Ron Wyden (D-OR) attempts to crack down on any efforts by drug companies to overcharge taxpayers for Medicaid rebates. The bill would give HHS new authority to reclassify a drug and recoup rebates when a manufacturer deliberately misclassifies a drug in order to pay lower rebates.

A bill introduced by Sens. Chuck Grassley (R-IA) and Ron Wyden (D-OR) attempts to crack down on any efforts by drug companies to overcharge taxpayers for Medicaid rebates. The bill would give HHS new authority to reclassify a drug and recoup rebates when a manufacturer deliberately misclassifies a drug in order to pay lower rebates. The lawmakers specifically mentioned Mylan, which paid $465 million to settle a lawsuit with the Justice Department in 2016. The company incorrectly classified the EpiPen as a generic drug, when it was actually a brand name drug. The settlement may have only been a fraction of the total amount Mylan underpaid. One federal analysis found that taxpayers may have overpaid for EpiPen by as much as $1.27 billion over 10 years.