FTC Sues Drug "Gatekeepers" Over High Insulin Prices

The US Federal Trade Commission (FTC) has filed a lawsuit against the country’s three largest pharmacy benefit managers, accusing them of inflating insulin prices to secure millions of dollars in rebates from pharmaceutical companies, Jody Godoy and Ahmed Aboulenein reported for Reuters.

The lawsuit names UnitedHealth Group Inc.'s Optum unit, CVS Health Corp.'s CVS Caremark, and Cigna Corp.'s Express Scripts. I Photo: UnitedHealth Group

The lawsuit names UnitedHealth Group Inc.'s Optum unit, CVS Health Corp.'s CVS Caremark, and Cigna Corp.'s Express Scripts, alleging that these companies excluded lower-cost insulin options from drug lists covered by insurers.

Lowering drug prices has been a priority for the Biden administration, with Vice President Kamala Harris, the Democratic presidential nominee, frequently highlighting her efforts to reduce insulin prices on the campaign trail.

The FTC contends that the companies' actions harmed patients with coinsurance and deductibles, who were ineligible for the rebated prices. Together, these three companies administer 80% of all prescriptions in the US.

The lawsuit was filed in the FTC's in-house court, and the companies involved have defended their practices, claiming they have reduced insulin prices for businesses, unions, and patients. KFF health policy expert Larry Levitt described the FTC action as a “shot across the bow.”