Microsoft To Offer Governments Local Version of Azure Cloud Service ( 28

Microsoft on Monday said it will soon make it possible for government clients to run its cloud technology on their own servers as part of a concerted effort to make Azure more appealing to local and federal agencies. From a report: The pairing of Azure Stack, Microsoft's localized cloud product, and Azure Government, the government-tailored version of Microsoft's cloud, comes as competition against Inc for major clients in the public sector ramps up. The new offering, which will be made available in mid-2018, is designed to appeal to governments and agencies with needs for on-premise servers, such as in a military operation or in an embassy abroad, said Tom Keane, Microsoft Azure's head of global infrastructure.

NRA Gives Ajit Pai 'Courage Award' and Gun For 'Saving the Internet' ( 563

The National Rifle Association (NRA) today gave its Charlton Heston Courage Under Fire Award to Ajit Pai, chairman of the Federal Communications Commission. "Pai was about to speak at the Conservative Political Action Conference (CPAC) in Maryland when the award presentation seemed to catch him by surprise," reports Ars Technica. "The award is a handmade long gun that could not be brought on stage, so it will be housed in the NRA museum until Pai can receive it." From the report: "Ajit Pai, as you probably already know, saved the Internet," American Conservative Union (ACU) Executive Director Dan Schneider told the audience. The ACU is the host of CPAC; Schneider made a few more remarks praising Pai before handing the award presentation over to NRA board member Carolyn Meadows. Pai "fought to preserve your free speech rights" as a member of the FCC's Republican minority during the Obama administration, Schneider said. Pai "fought and won against all odds, but the Obama administration had some curveballs and they implemented these regulations to take over the Internet." "As soon as President Trump came into office, President Trump asked Ajit Pai to liberate the Internet and give it back to you," Schneider added. "Ajit Pai is the most courageous, heroic person that I know."

The signature achievement that helped Pai win the NRA courage award came in December when the FCC voted to eliminate net neutrality rules. The rules, which are technically still on the books for a while longer, prohibited Internet service providers from blocking and throttling lawful Internet traffic and from charging online services for prioritization. Schneider did not explain how eliminating net neutrality rules preserved anyone's "free speech rights."
Right Wing Watch posted a video of the ceremony.

FCC To Officially Rescind Net Neutrality Rules On Thursday ( 124

An anonymous reader quotes a report from Reuters: The U.S. Federal Communications Commission is expected to publish on Thursday its December order overturning the landmark Obama-era net neutrality rules, two sources briefed on the matter said Tuesday. The formal publication in the Federal Register, a government website, means state attorneys general and advocacy groups will be able to sue in a bid to block the order from taking effect. The Republican-led FCC in December voted 3-2 to overturn rules barring service providers from blocking, slowing access to or charging more for certain content. The White House Office of Management and Budget still must sign off on some aspects of the FCC reversal before it takes legal effect. Congressional aides say the publication will trigger a 60-legislative-day deadline for Congress to vote on whether to overturn the decision. U.S. Senate Democrats said in January they had the backing of 50 members of the 100-person chamber for repeal, leaving them just one vote short of a majority. The December FCC order will be made public on Wednesday and formally published on Thursday, the sources said.

Trump's New Infrastructure Plan Calls For Selling Off Two Airports ( 406

The Trump administration has released an infrastructure plan on Monday that proposes that the federal government considers selling off Ronald Reagan Washington National Airport and Washington Dulles International Airport. According to Trump's blueprint, the administration wants to allow federal agencies to divest assets if they "can demonstrate an increase in value from the sale would optimize the taxpayer value for federal assets." It also includes the George Washington and Baltimore Washington parkways, the Washington Aqueduct and the transmission assets of the Tennessee Valley Authority and Bonneville Power Administration on the list for "potential divesture." Politico reports: State and local agencies or the private sector may be better at managing assets currently owned by the federal government, the administration argues, and federal agencies should be able to "identify appropriate conditions under which sales would be made." They should also "delineate how proceeds would be spent." Under the administration's proposal, federal agencies would have to complete an analysis demonstrating an "increase in value from divestiture." Though technically owned by the federal government, both airports are operated by the Metropolitan Washington Airports Authority under a long-term lease agreement. The 53-page infrastructure plan lays out a vision to turn $200 billion in federal money into $1.5 trillion for fixing America's infrastructure by leveraging local and state dollars and private investment. "The White House says its plan will create $1.5 trillion for repairing and upgrading America's infrastructure," reports CNNMoney. "Only $200 billion of that, however, would come from direct federal spending. The rest is supposed to come from state and local governments, which are expected to match any federal allocation by at least a four-to-one ratio. States have gradually assumed more of the responsibility for funding infrastructure in recent years, and the White House says it wants to accelerate that trend."

As for how the money would be split up, the plan says that half of the new federal money, $100 billion, "would be parceled out as incentives to local government entities," reports CNNMoney. "An additional $20 billion would go toward 'projects of national significance' that can 'lift the American spirit,'" while another $50 billion will be designated "for rural block grants, most of which will be given to states according to a formula based on the miles of rural roads and the rural population they have," reports CNNMoney. "The rest of the money would support other infrastructure-related undertakings..."
It's funny.  Laugh.

There Are Ajit Pai 'Verizon Puppet' Jokes That the FCC Doesn't Want You To Read ( 97

An anonymous reader quotes a report from Ars Technica: The Federal Communications Commission is refusing to release the draft versions of jokes told by Chairman Ajit Pai at a recent dinner, claiming that releasing the drafts would "impede the candid exchange of ideas" within the commission. In December, Pai gave a speech at the annual FCC Chairman's Dinner and played a video that attempts to lampoon critics who accuse Pai of doing the bidding of Verizon, his former employer. The video was shown less than a week before the FCC voted to repeal net neutrality rules, a favorable move for the broadband industry requested by Verizon and other ISPs. The satirical skit shows Pai planning his future ascension to the FCC chairmanship with Verizon executive Kathleen Grillo in 2003, the last year Pai worked as a Verizon lawyer. The video shows Pai and the Verizon executive plotting to install a "Verizon puppet" as FCC chair. In response, Gizmodo filed a Freedom of Information Act (FoIA) request for "any communications records from within the chairman's office referencing the event or the Verizon executive," the news site wrote yesterday. "Nearly a dozen pages worth of emails were located, including draft versions of the video's script and various edits," Gizmodo wrote. "The agency is refusing to release them, however; it is 'reasonably foreseeable,' it said, that doing so would injure the 'quality of agency decisions.'" The FCC searched for the records in response to Gizmodo's request and "returned no communications whatsoever with Kathy Grillo," the article said.

California Senate Defies FCC, Approves Net Neutrality Law ( 292

The California State Senate yesterday approved a bill to impose net neutrality restrictions on Internet service providers, challenging the Federal Communications Commission attempt to preempt such rules. From a report: The FCC's repeal of its own net neutrality rules included a provision to preempt state and municipal governments from enforcing similar rules at the local level. But the governors of Montana and New York have signed executive orders to enforce net neutrality and several states are considering net neutrality legislation.

The FCC is already being sued by t21 states and the District of Columbia, which are trying to reverse the net neutrality repeal and the preemption of state laws. Attempts to enforce net neutrality rules at the state or local level could end up being challenged in separate lawsuits.


Montana Becomes First State To Implement Net Neutrality After FCC Repeal ( 132

An anonymous reader quotes a report from The Hill: Montana Gov. Steve Bullock (D) signed an executive order on Monday requiring internet service providers with state contracts to abide by net neutrality principles. The order makes his state the first to push back on the Federal Communications Commission's decision to repeal the open internet rules last month. The order says that in order to receive a contract with the state government, internet service providers must not engage in blocking or throttling web content or create internet fast lanes. Those practices were all banned under the Obama-era 2015 net neutrality order. Bullock's office said the executive order goes into effect immediately, but there will be a six-month grace period for companies to ensure that they're in compliance. The governor said on Monday that he is encouraging his counterparts and legislators in other states to follow suit, promising to personally email a copy of his order to any who ask for it. Further reading: The New York Times
The Internet

The FCC Is Still Tweaking Its Net Neutrality Repeal ( 68

An anonymous reader quotes a report from TechCrunch: You may think, from the pomp accompanying the FCC's vote in December to repeal the 2015 net neutrality rules, that the deed was accomplished. Not so -- in fact, the order hasn't even reached its final form: the Commission is still working on it. But while it may be frustrating, this is business as usual for regulations like this, and concerned advocates should conserve their outrage for when it's really needed. The "Restoring Internet Freedom" rule voted on last month was based on a final draft circulated several weeks before the meeting at which it would be adopted. But as reports at the time noted, significant edits (i.e. not fixing typos) were still going into the draft the day before the FCC voted. Additional citations, changes in wording and more serious adjustments may be underway. It may sound like some serious shenanigans are being pulled, but this is how the sausage was always made, and it's actually one of Chairman Ajit Pai's handful of commendable efforts that the process is, in some ways at least, more open to the public. The question of exactly what is being changed, however, we will have ample time to investigate: The rules will soon be entered into the federal register, at which point they both come into effect and come under intense scrutiny and legal opposition.

Internal FCC Report Shows Republican Net Neutrality Narrative Is False ( 363

An anonymous reader quotes a report from Motherboard: A core Republican talking point during the net neutrality battle was that, in 2015, President Obama led a government takeover of the internet, and Obama illegally bullied the independent Federal Communications Commission into adopting the rules. In this version of the story, Ajit Pai's rollback of those rules Thursday is a return to the good old days, before the FCC was forced to adopt rules it never wanted in the first place. But internal FCC documents obtained by Motherboard using a Freedom of Information Act request show that the independent, nonpartisan FCC Office of Inspector General -- acting on orders from Congressional Republicans -- investigated the claim that Obama interfered with the FCC's net neutrality process and found it was nonsense. This Republican narrative of net neutrality as an Obama-led takeover of the internet, then, was wholly refuted by an independent investigation and its findings were not made public prior to Thursday's vote.

Using a Freedom of Information Act request, Motherboard obtained a summary of the Inspector General's report, which has not been released publicly and is marked "Official Use Only, Law Enforcement Sensitive Information." After reviewing more than 600,000 emails, the independent office found that there was no collusion between the White House and the FCC: "We found no evidence of secret deals, promises, or threats from anyone outside the Commission, nor any evidence of any other improper use of power to influence the FCC decision-making process." [...] Since 2014, Republicans have pointed to net neutrality as an idea primarily promoted by President Obama, and have made it another in a long line of regulations and laws that they have sought to repeal now that Donald Trump is president. Prior to this false narrative, though, net neutrality was a bipartisan issue; the first net neutrality rules were put in place under President George W. Bush, and many Republicans worked on the 2015 rules that were just dismantled. What happened, then, is that Republicans sold the public a narrative that wasn't true, then used that narrative to repeal the regulations that protect the internet.


'There Will Be a [Senate] Vote' To Reinstate Net Neutrality, Schumer Says ( 278

An anonymous reader quotes a report from Ars Technica: U.S. Senate Minority Leader Chuck Schumer (D-N.Y.) said he will force a vote on a bill that would reinstate the Federal Communications Commission's net neutrality rules. Legislation to reverse the repeal "doesn't need the support of the majority leader," Schumer said during a press conference Friday, according to The Hill. "We can bring it to the floor and force a vote. So, there will be a vote to repeal the rule that the FCC passed." The Federal Communications Commission voted to repeal its own net neutrality rules last week, and the repeal will take effect 60 days after it is published in the Federal Register. But Congress can overturn agency actions by invoking the Congressional Review Act (CRA), as it did earlier this year in order to eliminate consumer broadband privacy protections. A successful CRA vote in this case would invalidate the FCC's net neutrality repeal and prevent the FCC from issuing a similar repeal in the future. This would force the FCC to maintain the rules and the related classification of ISPs as common carriers under Title II of the Communications Act. A CRA vote lets Congress "undo regulations with a simple majority," without the possibility of a filibuster, as a Washington Post story said in February. Sen. Ed Markey (D-Mass.) announced a plan to file the CRA resolution last week. "It's in our power to do that and that's the beauty of the CRA rule," Schumer said. "Sometimes we don't like them, when they used it to repeal some of the pro-environmental regulations, but now we can use the CRA to our benefit, and we intend to."
The Internet

FCC Will Also Order States To Scrap Plans For Their Own Net Neutrality Laws ( 280

An anonymous reader quotes a report from Ars Technica: In addition to ditching its own net neutrality rules, the Federal Communications Commission also plans to tell state and local governments that they cannot impose local laws regulating broadband service. This detail was revealed by senior FCC officials in a phone briefing with reporters today, and it is a victory for broadband providers that asked for widespread preemption of state laws. FCC Chairman Ajit Pai's proposed order finds that state and local laws must be preempted if they conflict with the U.S. government's policy of deregulating broadband Internet service, FCC officials said. The FCC will vote on the order at its December 14 meeting. It isn't clear yet exactly how extensive the preemption will be. Preemption would clearly prevent states from imposing net neutrality laws similar to the ones being repealed by the FCC, but it could also prevent state laws related to the privacy of Internet users or other consumer protections. Pai's staff said that states and other localities do not have jurisdiction over broadband because it is an interstate service and that it would subvert federal policy for states and localities to impose their own rules.

Equifax Breach is Very Possibly the Worst Leak of Personal Info Ever ( 401

The breach Equifax reported Thursday is very possibly is the most severe of all for a simple reason: the breath-taking amount of highly sensitive data it handed over to criminals. Dan Goodin of ArsTechnica writes: By providing full names, Social Security numbers, birth dates, addresses, and, in some cases, driver license numbers, it provided most of the information banks, insurance companies, and other businesses use to confirm consumers are who they claim to be. The theft, by criminals who exploited a security flaw on the Equifax website, opens the troubling prospect the data is now in the hands of hostile governments, criminal gangs, or both and will remain so indefinitely. Hacks hitting Yahoo and other sites, by contrast, may have breached more accounts, but the severity of the personal data was generally more limited. And in most cases the damage could be contained by changing a password or getting a new credit card number. What's more, the 143 million US people Equifax said were potentially affected accounts for roughly 44 percent of the population. When children and people without credit histories are removed, the proportion becomes even bigger. That means well more than half of all US residents who rely the most on bank loans and credit cards are now at a significantly higher risk of fraud and will remain so for years to come. Besides being used to take out loans in other people's names, the data could be abused by hostile governments to, say, tease out new information about people with security clearances, especially in light of the 2015 hack on the US Office of Personnel Management, which exposed highly sensitive data on 3.2 million federal employees, both current and retired. Meanwhile, if you accept Equifax's paltry "help" you forfeit the right to sue the company, it has said. In its policy, Equifax also states that it won't be helping its customers fix hack-related problems.

UPDATE (9/9/17): Equifax has now announced that "the arbitration clause and class action waiver included in the Equifax and TrustedID Premier terms of use does not apply to this cybersecurity incident."

Bloomberg reported on Friday that a class action seeking to represent 143 million consumers has been filed, and it alleges the company didn't spend enough on protecting data. The class-action -- filed by the firm Olsen Daines PC along with Geragos & Geragos, a celebrity law firm known for blockbuster class actions -- will seek as much as $70 billion in damages nationally.
United States

US Agency Revokes All State Discounts For Kaspersky Products ( 93

The U.S. General Services Administration has removed Kapersky Lab from its list of approved vendors for federal systems, which also eliminates the discounts it previously offered to state governments. Long-time Slashdot reader Rick Zeman writes: "The agency's statement suggested a vulnerability exists in Kaspersky that could give the Russian government backdoor access to the systems it protects, though they offered no explanation or evidence of it," reports the Washington Post. Kaspersky, of course, denies this, offering their source code up for U.S. Government review... "Three current and former defense contractors told The Post that they knew of no specific warnings circulated about Kaspersky in recent years, but it has become an unwritten rule at the Pentagon not to include Kaspersky as a potential vendor on new projects."
"The lack of information from the GSA underscores a disconnect between local officials and the federal government about cybersecurity," the Post reports, adding that "the GSA's move on July 11 has left state and local governments to speculate about the risks of sticking with the company or abandoning taxpayer-funded contracts, sometimes at great cost."

The Post also quotes a cybersecurity expert at a prominent think tank -- the Center for Strategic and International Studies -- who believes that "it's difficult, if not impossible" for a company like Kaspersky to be headquartered in Moscow "if you don't cooperate with the government and the intelligence services."

Edward Snowden On Trump Administration's Recent Arrest of an Alleged Journalistic Source ( 342

Snowden writes: Winner is accused of serving as a journalistic source for a leading American news outlet about a matter of critical public importance. For this act, she has been charged with violating the Espionage Act -- a World War I era law meant for spies -- which explicitly forbids the jury from hearing why the defendant acted, and bars them from deciding whether the outcome was to the public's benefit. This often-condemned law provides no space to distinguish the extraordinary disclosure of inappropriately classified information in the public interest -- whistleblowing -- from the malicious disclosure of secrets to foreign governments by those motivated by a specific intent to harm to their countrymen. The prosecution of any journalistic source without due consideration by the jury as to the harm or benefit of the journalistic activity is a fundamental threat to the free press. As long as a law like this remains on the books in a country that values fair trials, it must be resisted. No matter one's opinions on the propriety of the charges against her, we should all agree Winner should be released on bail pending trial. Even if you take all the government allegations as true, it's clear she is neither a threat to public safety nor a flight risk. To hold a citizen incommunicado and indefinitely while awaiting trial for the alleged crime of serving as a journalistic source should outrage us all.

Americans Support Letting Cities Build Their Own Broadband Networks, Pew Finds ( 113

An anonymous reader quotes a report from The Verge: Most Americans want to let local governments build out internet service if the internet providers in their area aren't any good, according to the Pew Research Center. In a phone survey of over 4,000 people last month, Pew found that 70 percent of respondents agreed that local governments should have the power to start their own high-speed networks if current offerings are "too expensive or not good enough." The results show an overwhelming support for municipal broadband -- networks that are at least somewhat run by local governments -- at a time when encouraging broadband buildout is a top federal priority. But despite the support, in much of the US, building out municipal networks just isn't possible. More than 20 states have passed laws banning local governments from starting their own broadband service, largely at the behest of internet providers that want to avoid competition at all cost. Though Pew's survey found some positive results for municipal broadband, it found less support for broadband subsidies for low-income homes. Under half of all Americans, 44 percent, said they supported subsidies, while nearly everyone else surveyed said they felt internet service "is affordable enough" that most households should be able to pay for it. (At the same time, nearly half of all people surveyed said they didn't know what speed of internet they received.)

Elon Musk: I Can Fix South Australia Power Network in 100 Days Or It's Free ( 274

An anonymous reader shares a report on The Guardian: Elon Musk, the billionaire founder of electric car giant Tesla, has thrown down a challenge to the South Australian and federal governments, saying he can solve the state's energy woes within 100 days -- or he'll deliver the 100MW battery storage system for free. On Thursday, Lyndon Rive, Tesla's vice-president for energy products, told the AFR the company could install the 100-300 megawatt hours of battery storage that would be required to prevent the power shortages that have been causing price spikes and blackouts in the state. Thanks to stepped-up production out of Tesla's new Gigafactory in Nevada, he said it could be achieved within 100 days. Mike Cannon-Brookes, the Australian co-founder of Silicon Valley startup Atlassian, on Friday tweeted Elon Musk, asking if Tesla was serious about being able to install the capacity. Musk replied that the company could do it in 100 days of the contract being signed, or else provide it free, adding: "That serious enough for you?"

White House, 35 States To Boost Electric Vehicle Charging Stations ( 72

An anonymous reader quotes a report from CNBC: The White House said on Thursday it will establish 48 national electric-vehicle (EV) charging networks on nearly 25,000 miles of highways in 35 U.S. states. The Obama administration said 28 states, utilities and vehicle manufactures, including General Motors, BMW and Nissan Motor, and EV charging firms have agreed to work together to jump-start the additional charging stations. The corridors were required to be established by December under a 2015 highway law. The White House said 24 state and local governments have agreed to buy hundreds of additional electric vehicles for government fleets and add new EV charging stations. California will buy at least 150 zero-emission vehicles and provide EV charging at a minimum of 5 percent of state-owned parking spaces by 2020. The city of Atlanta will add 300 charging stations at Hartsfield-Jackson International Airport by the end of 2017. Los Angeles agreed to nearly triple the city's current plug-in electric fleet to 555 vehicles from about 200 by the end of 2017. Of those, 200 will be for the police department. The city is also adding another 500 stations by 2017. One hurdle to the mass adoption of EVs has been the difficulty in finding places to recharge vehicles. In July, the White House said it was expanding a federal loan guarantee program to include companies building EV charging stations. The U.S. Energy Department said in July that charging facilities are now an eligible technology for the program that can provide up to $4.5 billion in loan guarantees.

Non-Cable Internet Providers Offer Faster Speeds To the Wealthy ( 170

An anonymous reader quotes a report from Ars Technica: When non-cable Internet providers -- outlets like ATT or Verizon -- choose which communities to offer the fastest connections, they don't juice up their networks so everyone in their service area has the option of buying quicker speeds. Instead, they tend to favor the wealthy over the poor, according to an investigation by the Center for Public Integrity. The Center's data analysis found that the largest non-cable Internet providers collectively offer faster speeds to about 40 percent of the population they serve nationwide in wealthy areas compared with just 22 percent of the population in poor areas. That leaves tens of millions of Americans with the choice of either purchasing an expensive connection from the only provider in their area -- typically a cable company -- or just doing the best they can with slower speeds. Middle-income areas don't fare much better, with a bit more than 27 percent of the population having access to a DSL provider's fastest speeds. The Center reached its conclusions by merging the latest Federal Communications Commission (FCC) data with income information from the U.S. Census Bureau. The non-cable Internet providers -- the four largest are ATT Inc, Verizon Communications Inc, CenturyLink Inc, and Frontier Communications Corp -- hook up customers over telephone wires that are Digital Subscriber Lines (DSL), or they use hybrid networks that include some fiber connections near (and sometimes directly to) homes. The Center included all types of connection in its analysis. These companies account for nearly 40 percent of the 92 million Internet connections nationwide. Cable companies, such as Comcast Corp and Charter Communications Inc, operate under a different set of conditions. These providers offer the same fast speeds to almost every community they serve, in part because of franchise agreements with local governments. But a previous Center investigation and other reports have shown that cable firms sometimes avoid lower-income or hard-to-reach areas based on how franchise agreements are written. Poor areas not served by the cable companies are not included in the Centerâ(TM)s analysis, which results in what seems like an equitable distribution of speeds across income levels. "Society said it did not matter if you could pay for electricity; we wanted everyone to have it. Society said we would not limit dial tone to those who could pay the most, we gave it to all," said telecommunications lawyer Gerard Lederer of Best Best and Krieger LCC in Washington, D.C., in an e-mail. "Broadband is quickly becoming that utility, and if applications only work at high speeds, then the universal availability of that speed must be the goal, otherwise you are providing everyone with water, just some of the water is not drinkable."

President Obama Orders Government To Plan For 'Space Weather' ( 169

An anonymous reader quotes a report from Network World: President Barack Obama today issued an Executive Order that defines what the nation's response should be to a catastrophic space weather event that takes out large portions of the electrical power grid, resulting in cascading failures that would affect key services such as water supply, healthcare, and transportation. The Executive Order ideally will coordinate the responses across government agencies such as NASA, the Departments of Homeland Security, Energy and others to help minimize economic loss and save lives by enhancing national security, identifying successful mitigation technologies, and ordering the creation of nationwide response and recovery plans and procedures, the White House stated. Further, the Executive Order will enhance the scientific and technical capabilities of the United States, including improved prediction of space-weather events and their effects on infrastructure systems and services. By this action, the Federal Government will lead by example and help motivate State and local governments, and other nations, to create communities that are more resilient to the hazards of space weather. The Executive Order reinforces the formal National Space Weather Strategy and accompanying Action Plan which were announced last year. It also bolsters other work such as the replacement of aging satellites that monitor and help forecast space weather, proposing space-weather standards for both the national and international air space, development of regulations to ensure the continued operation of the electric grid during an extreme space weather event, proposing a new option for replacing crucial Extra High Voltage (EHV) transformers damaged by space weather, and developing domestic production sources for EHV transformers, the White House wrote.

Feds Go After Mylan For Scamming Medicaid Out of Millions On EpiPen Pricing ( 198

An anonymous reader quotes a report from Ars Technica: Over the nine or so years that Mylan, Inc. has been selling -- and hiking the price -- of EpiPens, the drug company has been misclassifying the life-saving device and stiffing Medicaid out of full rebate payments, federal regulators told Ars. Under the Medicaid Drug Rebate Program, drug manufacturers, such as Mylan, can get their products covered by Medicaid if they agree to offer rebates to the government to offset costs. With a brand-name drug such as the EpiPen, which currently has no generic versions and has patent protection, Mylan was supposed to classify the drug as a "single source," or brand name drug. That would mean Mylan is required to offer Medicaid a rebate of 23.1 percent of the costs, plus an "inflation rebate" any time Mylan raises the price of the brand-name drug at a rate higher than inflation. Mylan has opted for such price increases -- a lot. Since Mylan bought the rights to EpiPen in 2007, it has raised the price on 15 separate occasions, bringing the current list price to $608 for a two-pack up from about $50 a pen in 2007. That's an increase of more than 500 percent, which easily beats inflation. But instead of classifying EpiPen as a "single source" drug, Mylan told regulators that it's a "non-innovator multiple source," or generic drug. Under that classification, Mylan is only required to offer a rebate of 13 percent and no inflation rebates. It's unclear how much money Mylan has skipped out on paying in total to state and federal governments. But according to the state health department of Minnesota, as reported by CNBC, the misclassification cost that state $4.3 million this year alone.

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