The Federal Trade Commission is suing three pharmacy benefit managers, including UnitedHealth Group’s Optum Rx, CVS Health’s Caremark, and Cigna’s Express Scripts, for allegedly inflating insulin prices. The PBMs are accused of engaging in anticompetitive practices, resulting in high list prices for insulin and shifting costs to vulnerable patients. The lawsuit also targets the PBMs’ group purchasing organizations for prioritizing rebates that led to inflated prices. The FTC claims that this system has resulted in billions of dollars in rebates for PBMs at the expense of diabetics who must pay more out-of-pocket for their medications. CVS Caremark and Cigna have denied the allegations, blaming drug manufacturers for price hikes. The FTC argues that PBMs and drug manufacturers are responsible for the skyrocketing prices of insulin, impacting millions of Americans. The National Community Pharmacists Association supported the lawsuit, highlighting the negative impact of rebates on patients, taxpayers, and small pharmacies. The lawsuit follows accusations from lawmakers and state lawsuits against PBMs for driving up drug costs. The FTC’s efforts are part of a broader investigation into PBMs’ role in rising healthcare costs, with the lawsuit targeting the “Big Three” PBMs dominating the prescription drug market in the U.S.
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Three Drug Middlemen Accused by Federal Trade Commission of Price Inflation for Insulin
