The Federal Trade Commission has filed a lawsuit against three major pharmacy benefit managers – UnitedHealth Group’s Optum Rx, CVS Health’s Caremark, and Cigna’s Express Scripts – for allegedly inflating insulin prices through anticompetitive and unfair practices. The PBMs are accused of prioritizing high rebates from drug manufacturers, leading to higher insulin prices for vulnerable patients. The lawsuit also includes the PBMs’ group purchasing organizations. CVS Caremark and Cigna deny the allegations, blaming drug manufacturers for price hikes. The FTC claims that the PBMs, along with drug manufacturers like Eli Lilly and Novo Nordisk, are responsible for the increase in insulin prices, which have made the life-saving medication unaffordable for many patients. The National Community Pharmacists Association supports the FTC’s lawsuit, stating that PBMs manipulate the system to drive up prices and eliminate competition from smaller pharmacies. In a hearing, lawmakers criticized PBMs for their role in inflating drug prices. The investigation into PBMs’ impact on healthcare costs began in March 2023, and the lawsuit reflects a growing trend of legal action against PBMs at both the federal and state levels for their pricing practices. The FTC believes that PBMs and drug manufacturers may be sued in the future for their part in driving up drug costs and making essential medications less accessible to patients.
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The Federal Trade Commission alleges that three drug intermediaries have inflated the prices of insulin
