Federal Government Sues Major PBMs Over Insulin Price Hikes

The federal government has initiated a lawsuit against leading Pharmacy Benefit Managers (PBMs) — Caremark, Express Scripts, and OptumRx — accusing them of anticompetitive practices that have driven up insulin prices. The Federal Trade Commission alleged these practices have inflated drug list prices, affecting diabetic patients without insurance or high deductible plans.

The federal government is taking legal action against some of the nation's largest Pharmacy Benefit Managers (PBMs) over practices that have allegedly driven up the price of insulin, a crucial drug for diabetic patients.

The lawsuit targets three dominant PBMs — Caremark, Express Scripts, and OptumRx — which control roughly 80% of the U.S. prescription market. The Federal Trade Commission (FTC) claims these companies have engaged in anticompetitive behaviors, causing the price of insulin to soar by manipulating drug rebates.

According to the FTC, these PBMs have used their market power to inflate the list prices of drugs, compelling patients with no insurance or high-deductible plans to bear excessive costs. This has sparked widespread criticism from politicians and patients, although PBMs argue that their practices help control costs by negotiating discounts for their clients.

(With inputs from agencies.)