FTC Sues CVS, Cigna, UnitedHealth PBMs for Inflating Insulin Prices

Sep 20, 2024, 04:12 PM

The Federal Trade Commission (FTC) has filed a lawsuit against the three largest pharmacy benefit managers (PBMs) in the United States: CVS Caremark, Cigna's Express Scripts, and UnitedHealth's OptumRx. The FTC accuses these PBMs of artificially inflating the price of insulin through illegal rebate programs, resulting in significant financial burdens for diabetic patients. The lawsuit claims that these practices have driven up the cost of insulin by over 1,200 percent over the past two decades. The FTC also alleges that these PBMs have profited at the expense of patients by steering them towards higher-priced insulin to reap millions of dollars in rebates from pharmaceutical companies. While the lawsuit does not name insulin drugmakers Eli Lilly, Novo Nordisk, and Sanofi, the FTC reserves the right to sue these manufacturers in the future. Additionally, the FTC warns manufacturers and highlights that these PBMs administer 80% of medication in the US.