Colorado gets $5.5 million in settlement with EpiPen maker

Mylan, the pharmaceutical company that manufactures the popular EpiPen device to treat allergic reactions, will pay the state of Colorado $5.5 million as part of a settlement over claims that it shorted money owed to Medicaid.

Nationally, Mylan agreed to pay $465 million to the federal government and individual states as part of the settlement. The claims allege that Mylan misclassified EpiPen as a generic drug, even as it marketed EpiPen as a brand-name drug and raised the prices for the device 400 percent between 2010 and 2016. The generic classification allowed Mylan to avoid paying rebates to state Medicaid programs, according to the claims.