Senators call on Mylan to reimburse military for EpiPens

Members of the U.S. Senate Judiciary Committee urged Mylan to reimburse the Department of Defense for alleged overcharges on EpiPens, reports Reuters.

Senate Judiciary Chairman Chuck Grassley (R-Iowa), Sen. Richard Blumenthal (D-Conn.) and Amy Klobuchar (D-Minn.) sent a letter to Mylan CEO Heather Bresch Monday asking when the drugmaker planned to reimburse the Department of Defense for the alleged EpiPen overcharges. The Senators said Mylan intentionally classified its EpiPen as a generic drug to avoid paying higher rebates through Medicaid's Drug Rebate Program, according to the report.

While the Pentagon receives a government discount on EpiPens dispensed at military treatment facilities and by mail order, almost half of its spending was at retail pharmacies where it paid nearly three times more than its discounted rate: an average of $509 for EpiPen and $528 for EpiPen Jr. two-packs, according to the report.

The Pentagon's EpiPen costs rose from $9 million in 2008 to $57 million over the past year. The spending increase is partly caused by major price hikes on the life-saving allergy medication.

The Senate Judiciary Committee will hold a hearing on Nov. 30 in regard to EpiPen pricing, among other related matters, Reuters reports.

More articles on supply chain:

UPS acquires medical delivery firm Marken
Safety-net hospitals call for federal investigation into alleged EpiPen overcharges
Logistics industry adds 7,500 jobs in October: 4 things to know

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