4 ms·

So if $1.3B was spent and the rebate was short by 10% then Mylan should have paid $130M more. That indicates somewhere around $365M is essentially punitive. (O

So if $1.3B was spent and the rebate was short by 10% then Mylan should have paid $130M more. That indicates somewhere around $365M is essentially punitive. (Or, if $1.3B was net of the 13% already paid, the gross was $1.49B, the underpayment was $149M and the punitive cost $316M)

makomk 10y ago
That's only the minimum rebate for non-generic drugs. Companies have to pay more if the prices increase by more than inflation (Epipens did) or if they offer bigger discounts to others (may have done, I'm not sure).
- refurb 10y ago
  Correct. The Medicaid discount comes off of the average manufacturer price (AMP) which includes most of discounts offered to customers. In other words if my list price is $1, but on average I sell it for $0.80, the the Medicaid price is $0.80 minus the Medicaid discount. However, I assume that they were only paying the wrong discount and that otherwise the calculation included AMP and the price increase penalty. Makes me wonder if there was a penalty applied as well.