CMS Administrator Seema Verma praised the agency’s agreement with Mylan to reclassify EpiPen as a brand-name drug.
The company also will use the correct reference price of the third quarter of 1990 to calculate inflationary payment rebates, according to the CMS announcement. The changes will be effective retroactive to April 1 of this year.
Verma called the agreement “a huge win” for taxpayers and Medicaid recipients, saying it would save hundreds of millions of dollars by ending overcharging of Medicaid. The deal will further put drugmakers “on notice” regarding the efficacy of the program, she said.