FTC Sues Major PBMs Over Alleged Insulin Price Inflation

Friday, 20 September 2024, 20:17

The FTC has sued the three largest pharmacy benefit managers for allegedly inflating insulin prices through anticompetitive practices. This action targets CVS Caremark Rx, Cigna's Express Scripts, and UnitedHealth's OptumRx, which control 80% of prescriptions. The lawsuit aims to address the rising costs faced by diabetic patients. The agency insists these PBMs have exacerbated drug pricing issues, benefiting from a rebate system that favors high-cost drugs.
Thehill
FTC Sues Major PBMs Over Alleged Insulin Price Inflation

The Allegations Against Pharmacy Benefit Managers

The FTC initiated a lawsuit against the three largest pharmacy benefit managers (PBMs) for alleged anticompetitive practices that have inflated insulin prices. Targeting CVS Caremark Rx, Cigna's Express Scripts, and UnitedHealth's OptumRx, the FTC argues that these companies, controlling about 80% of all prescriptions, have prioritized high-priced medications in a perverse drug rebate system while cheaper alternatives exist.

Impact on Patients

As the Deputy Director of FTC's Bureau of Competition, Rahul Rao noted, millions of Americans with diabetes are severely affected by these practices. The lawsuit sheds light on how PBMs, perceived as medication gatekeepers, have driven up out-of-pocket costs for essential medications.

A Response from the PBMs

The trio of companies has pushed back against the FTC's claims, labeling the action as ideologically driven and filled with inaccuracies. They maintain that they contribute to making insulin affordable despite the accusations of price inflation.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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