Photo: Alex Wong/Getty Images

The House yesterday overwhelmingly passed a bill cracking down on some of the tactics Mylan used to pay lower Medicaid rebates for the EpiPen. The Senate is hoping to pass the bill this year.

The big picture: EpiPen was misclassified as a generic drug within Medicaid, which resulted in Mylan paying less in rebates and causing taxpayers to overpay as much as $1.27 billion over 10 years, according to one government estimate.

  • The new bill gives HHS the explicit authority to reclassify drugs, recover incorrect rebate payments, and fine drugmakers that knowingly misclassify drugs.
  • While this bill is small, it's also a sign of at least some bipartisanship on drug prices.

By the numbers: Only about 3% of drugs in the Medicaid rebate program were potentially misclassified in 2016, according to an HHS report.

  • Medicaid reimbursement for these drugs totaled about $813 million.
  • While 54 drugmakers may have misclassified drugs, four were responsible for more than half of all potential misclassifications.
  • Between 2012 and 2016, drugmakers may have owed an additional $1.3 billion in rebates for just 10 potentially misclassified drugs.

Go deeper: The drug pricing maze

Go deeper

1 hour ago - World

U.S. policy shift will allow taxpayer funding for projects in West Bank settlements

Friedman (L) with Netanyahu. Photo: Menahem Kahana/AFP via Getty Images

The U.S. and Israel will announce tomorrow that they are expanding three agreements on scientific cooperation to include Israeli settlements in the West Bank, Israeli and U.S. officials tell me.

Why it matters: This is a substantial policy shift for the U.S., which did not previously allow its taxpayers' money to be spent in the Israeli settlements.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Obama: Trump is "jealous of COVID's media coverage" Axios-Ipsos poll: Federal response has only gotten worse.
  2. Health: Hospitals face a crush — 13 states set single-day case records last week.
  3. Business: Winter threat spurs new surge of startup activity.
  4. Media: Pandemic causes TV providers to lose the most subscribers ever.
  5. States: Nearly two dozen Minnesota cases traced to three Trump campaign events.
  6. World: Putin mandates face masks.

McConnell: Confirming Amy Coney Barrett will help GOP retain Senate

Photo: Samuel Corum/Getty Images

Senate Majority Leader Mitch McConnell (R-Ky.) expressed no regrets about Judge Amy Coney Barrett's controversial confirmation, telling Politico in an interview that he believes the decision to place her on the Supreme Court just a week before the election will help Republicans retain the Senate.

Why it matters: With a week to go until Election Day, many Republicans are concerned that President Trump's unpopularity could cost them the Senate. McConnell has long viewed the transformation of the federal judiciary through the confirmation of young conservative judges as his defining legacy.

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