On Monday, Senators Chuck Grassley (R-IA) and Ron Wyden (D-WA) introduced legislation targeting drug manufacturers who intentionally misclassify drugs under Medicaid for the purpose of improving their reimbursement. The legislation comes in the wake of an Office of the Inspector General (HHS-OIG) investigation that found U.S. taxpayers may have overpaid for Mylan’s EpiPen by $1.27 billion over ten years as a result of Mylan classifying the branded EpiPen as a generic product.
The bill, the “Right Rebate Act of 2018,” would expand Medicaid’s ability to demand that manufacturers reclassify incorrectly listed drugs in the Medicaid drug rebate program, and would also impose capped civil monetary penalties for misclassifications.
The legislation also offers some insight into the priorities for the Senate Finance Committee in the upcoming 116th Congress, as Sen. Grassley will be the new Finance Chairman and Sen. Wyden will remain the Ranking Member. Drug pricing, as well as general federal health program oversight, are expected to remain top issues for both the Administration and Congress well into the next year.