Millions returned to Medicaid in EpiPen settlement

fraudulent Medicare and Kentucky Medicaid

FRANKFORT, Ky. (WTVQ) – Kentucky Attorney General Andy Beshear Tuesday announced his office is returning over $12 million to state and federal Medicaid programs to resolve multi-state claims that pharmaceutical company Mylan Inc. violated federal law by knowingly misclassifying EpiPen and EpiPen Jr. as a generic drug to avoid paying higher rebates owed to Medicaid.

Under the $12.2 million Kentucky settlement, $8.5 million will be returned to the federal Medicaid program and $3.7 million will be returned to Kentucky’s Medicaid program.

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“Medicaid and its expansion provide a critical service that helps Kentucky’s most vulnerable citizens,” Beshear said. “As Attorney General, I am committed to holding any company that defrauds Medicaid accountable. The actions of companies like Mylan defraud not only the government but the people government serves.”

According to the $465 million nationwide settlement, Mylan demanded massive price increases in the private market while avoiding its corresponding rebate obligations to Medicaid from 2010-2017 by erroneously reporting EpiPen as a generic drug despite the absence of any therapeutically equivalent drugs.

Federal law requires companies of single-source, or brand name, drugs to pay higher rebates to Medicaid.

Beshear’s Medicaid Fraud and Abuse Unit is charged with investigating and prosecuting any health care provider who fraudulently bills or abuses the Medicaid system.

To date, Beshear’s office has obtained settlements that will return over $64 million to taxpayers through recoveries of state and federal Medicaid funds, Medicare funds, and other funds through civil settlements and obligations of criminal restitution.

For more information or to report provider fraud, contact the Medicaid Fraud and Abuse Control Division at 877-228-7384.

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Tom Kenny joined ABC 36 News in June of 2001 as a General Assignment Reporter. A native of Peoria, Illinois, he graduated cum laude with a Bachelor of Arts in Mass Communications from Western Illinois University. He currently anchors ABC 36 News at 5pm, 6pm and 11pm. Tom has more than three decades of experience in broadcast journalism. He is the only broadcast journalist in Lexington television history to be honored with a national Edward R. Murrow Award. Tom was recognized for reporting on a story that gave a rare glimpse inside the secretive world of the Federal Witness Protection Program. He has won an Emmy Award for anchoring and another for investigative reporting, exposing the deceit and potential danger of online diploma mills. Tom has ten other Emmy nominations to his credit for investigative and feature reporting. He has won Associated Press Awards for reporting and anchoring. He has won two Addy Awards for excellence in promotional writing. Tom was the first broadcast journalist in Lexington TV history to be awarded the Silver Circle Award by the National Academy of Television Arts and Sciences. It is one of the highest honors given by NATAS. It recognizes television professionals who have performed distinguished service within the television industry for 25-years or more. Tom was honored for more than his longevity, he was recognized for making an enduring contribution to the vitality of the television industry and for setting high standards of achievement. He was also recognized for giving back to the community as a mentor, educator and volunteer. Tom also has network broadcast experience in radio and television having worked as a sports reporter for ESPN, Sportschannel, NBC Sports and the Breeders’ Cup. He was also the studio host and halftime producer for CBS Radio Sports’ College Football Game of the Week and covered the NFL for One-On-One Radio Sports. Prior to joining WTVQ-TV, Tom was Vice-President of the Houston Astros Minor League baseball team in Lexington. He was part of the original management team that brought professional baseball back to the Bluegrass after a nearly 50-year absence. Tom has lived in Lexington since 1984. In that time, he has been heavily involved with dozens of charity and civic groups, with a special emphasis on helping Veterans. He can be reached at You can also follow Tom on Facebook and Twitter @TomKennyNews. Just click on the links at the top of the page.