FTC Sues Prescription Drug Middlemen for Inflating Insulin Drug Price
The FTC has sued Caremark, Express Scripts, and Optum for anticompetitive practices inflating insulin prices, seeking to restore competition and potentially lower drug costs for consumers.
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The Federal Trade Commission (FTC) has filed a lawsuit against the three largest pharmacy benefit managers (PBMs)—Caremark, Express Scripts, and Optum—accusing them of engaging in anticompetitive practices that have artificially inflated insulin prices. The FTC claims that these PBMs have created a rebate system that prioritizes high rebates from drug manufacturers, leading to increased list prices for insulin and limiting patient access to more affordable options. The complaint highlights that these PBMs control about 80% of U.S. prescriptions and have exploited their market power, resulting in significant financial burdens on patients who rely on insulin. The average list price of insulin has skyrocketed, with some products increasing over 1,200% since 1999. The FTC's action aims to address these exploitative practices and restore competition in the pharmaceutical market, which could potentially lower drug prices for consumers. The agency also indicated that drug manufacturers may also be held accountable for their role in driving up prices. The lawsuit reflects ongoing concerns about the impact of PBMs on drug pricing and patient access to essential medications.
- FTC sues major PBMs for inflating insulin prices through unfair rebate practices.
- The lawsuit targets Caremark, Express Scripts, and Optum, which control 80% of U.S. prescriptions.
- Insulin prices have increased dramatically, with some products rising over 1,200% since 1999.
- The FTC seeks to restore competition in the pharmaceutical market to lower drug prices.
- Drug manufacturers may also face scrutiny for their role in escalating insulin costs.
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