WASHINGTON – Sen. Chuck Grassley of Iowa, chairman of the Senate Judiciary Committee, sought clarification from Iowa Attorney General Tom Miller regarding his office’s ability to determine the value of reimbursement to the state necessary to make Iowa whole from EpiPen’s apparent misclassification under Medicaid’s Drug Rebate Program. In his letter, Grassley states, “significant concerns remain that Iowa may not receive proper reimbursements.”
Last year, Minnesota estimated that EpiPen’s apparent misclassification may have cost the state more than $4 million in a single year alone. Grassley wrote to Miller seeking to determine whether Iowa taxpayers may have similarly overpaid for EpiPens under Medicaid. Miller acknowledged that his office was looking into the matter in September 2016. Since, Miller’s office has been in contact with Grassley’s office, but has not provided an estimate of the cost to the state and taxpayers.
“As you are aware, the Inspector General for Health and Human Services estimated that the EpiPen’s misclassification could have cost $1.27 billion,” Grassley wrote to Miller. “A portion of that involves rebates that would have been paid to the respective states, including Iowa. Accordingly, it must be assumed that some harm has been inflicted on Iowa and your office has a responsibility to ensure the state and its people receive the correct rebates.
“Please confirm whether it is accurate that your office is unable to determine the value of reimbursement necessary to make Iowa whole from EpiPen’s misclassification. If that is not the case, please explain what steps you are taking to make Iowa whole. If that is the case, please explain what steps you are taking to interface with the MFCUs to ensure that a proper and adequate reimbursement value is reached. And finally, assuming the Justice Department eventually settles with Mylan, please describe the process by which Iowa will receive its share of the settlement.”
Grassley said he would appreciate a response by July 20.
Last month, Grassley urged the Trump Administration to fix the misclassification of EpiPen under the Medicaid Drug Rebate Program. Grassley is also seeking accurate overpayment amounts for Dilaudid and Prilosec, two other popular drugs that reportedly were misclassified.
Grassley’s letter to the Iowa attorney general is available here.